Welcome to Episode 10 of our podcast, where we continue to bring practical property insights to the Southern Highlands community. In this episode, Paul Denny from Bowral Conveyancing Centre unpacks the complexities of buying property through a self-managed super fund (SMSF) and explains the pros, cons, and compliance requirements that buyers need to be aware of.
Paul outlines the rules around what properties can and cannot be purchased within an SMSF, clarifying that personal homes are excluded and investment properties, often commercial, are the most common option. He also discusses borrowing restrictions, with most lenders offering only up to 65–70% loans, and why expert mortgage advice is critical.
Listeners will learn how SMSFs can be used strategically, including opportunities for professionals to transfer existing business premises into their fund with significant stamp duty concessions. With over 46 years of conveyancing experience, Paul explains how these arrangements can support long-term retirement planning while highlighting the need for compliance and expert guidance.
If you’ve ever wondered about using your super to invest in property, this episode is a must-listen to understand the opportunities, limitations, and risks involved.
Listen to the Full Episode
Subscribe and listen on your favourite podcasting platform
Listen onSpotify
Listen on Apple Podcasts
Key Takeaways from the Episode
Paul highlights the realities of buying property with a self-managed super fund. Here’s what you’ll learn from this episode:
SMSFs and Property – Self-managed super funds can purchase property, but not your personal home. Properties must generally be investments, often commercial.
Borrowing Limits – SMSFs can borrow to purchase property, but lending is more limited, with borrowing caps typically at 65–70%.
Complex Rules – Using an SMSF for property investment requires strict compliance and professional advice from accountants and conveyancers.
Stamp Duty Savings – Professionals can transfer existing business premises into their SMSF with significant stamp duty concessions, sometimes as low as $750.
Retirement Strategy – Placing long-held business properties into an SMSF can generate rental income to support retirement.
Expert Guidance – With over four decades of experience, Bowral Conveyancing Centre helps clients navigate compliance, contracts, and strategic opportunities with SMSFs.
Podcast Transcript
Episode Title: How Self-Managed Super Funds Can Be Used to Purchase Property
Host: Graham (Speaker 2)
Guest: Paul Denny (Speaker 1)
Date: November 17, 2024
Transcript
Graham (00:00.180)
It’s 12 minutes to eight, and Ian’s not in the chair today, I am, but it’s great to catch up with a bloke whom I normally just open the front door for, but now I’m talking to in the flesh, and that’s Paul Denny from Bowral Conveyancing Centre. G’day mate, how you going?
Paul (00:16.000)
G’day Graham, how are you?
Graham (00:17.000)
Not too bad, not too bad. Now I know there’s a lot of questions about this because, let’s face it, a lot of money goes into super and people like to use that kind of money in regard to buying property or what have you, but you’ve got the pros and the cons.
Paul (00:27.278)
Well, I have, and look, one thing I have noticed in recent years is a lot more people are actually using self-managed super funds and they really don’t know what to do with them. So good morning to all the tradies out there who have been on the tools for an hour already. I know a lot of you have got a self-managed super fund. There are professionals, there are medical people, etc. And the question comes, “Can I buy property?” Well, the answer is yes, you can, but there are rules. Compliance.
So the first thing that you should do is talk to your administrator, which is generally your accountant, just to find out what you can and cannot do. Next thing to do is to find a property. Now, you can’t buy your own property, your own house.
Graham (01:13.500)
Because a lot of people think, “This will be pretty crash-hot because I’ll be able to find a place, I’ll buy it through the super and I’ll live in it.”
Paul (01:20.000)
That’s right, but you can’t do that. So it has to be an investment property, which is usually commercial. And then the other question is, can I borrow money? Well, the answer is yes, but it’s hard. You need to speak to a good mortgage broker because there are only limited lenders that will lend on a super fund. You will find that you won’t be able to borrow 90%; it’s more likely to be 65%, maybe 70%. It’s a bit more expensive and more complex.
One other interesting aspect of this is that there are plenty of professional people who actually own property already. They might have a consulting room or they might have a workshop or whatever. Their super fund can actually buy that property from them and put it into the super fund. And guess what? There’s a concession for stamp duty available on that. It’s only $750.
Graham (02:04.148)
Makes a big difference, doesn’t it?
Paul (02:05.500)
It makes it possible. Again, it’s complex. There are all sorts of compliance rules, etc. around that which we can handle. But it can be done and it’s a way for people who are approaching retirement to say, “Okay, well, I’ve been in these rooms or in this workshop for 20 years. Let’s get it in the super fund and rent it out to somebody else and use that as income for my retirement.”
Graham (02:29.000)
Look, the simple fact of the matter is they need to talk to somebody like yourself. Because you’ve been doing it since, what, 1978, I think, haven’t you?
Paul (02:37.000)
1978, about to tick over 46 years.
Graham (02:40.000)
Wow, good on ya. Yeah, 1978 from now and of course learning all the way about the ups and downs and roundabouts of the market and what have you. If you want to talk to somebody that’s experienced, talk to Paul. Now Paul, how can people contact you or get involved in having a chat about the super thing?
Paul (02:54.232)
Easy. bowralconveyancing.com.au. Contact me through there.
Graham (02:58.000)
Simple as that. Thank you for your advice.
Paul (03:00.000)
It’s a pleasure.
Graham (03:00.500)
Thanks for dropping in.
–
Key Information
Website: www.bowralconveyancing.com.au
Paul Denny is far from your average conveyancer. With a career spanning over four decades, Paul has established himself as a trailblazer in the industry. Starting his career in South Australia in 1978, Paul had early exposure to working alongside solicitors, gaining hands-on experience in the conveyancing landscape.
When legislation finally allowed the licensing of conveyancers in New South Wales in 1993, Paul didn’t hesitate to relocate and become the first licensed conveyancer in the state. From that moment, he made it his mission to deliver exceptional service, simplify property transactions, and help clients achieve their real estate goals.
After years of managing a successful practice in Sydney under the Paul Denny Conveyancing name, Paul took a step back from running a large organisation. However, his love for conveyancing led to the creation of Bowral Conveyancing Centre, a boutique service dedicated to the Southern Highlands community.