This is the most urgent question SMSF investors, accountants and financial advisers are asking right now. The short answer: it depends on what type of property you want to buy.
The Direct Answer
| Property Type | Can My SMSF Borrow? | Details |
|---|---|---|
| Residential property (new LRBA) | No — banned from 2026 | New Limited Recourse Borrowing Arrangements for residential property are prohibited |
| Residential property (existing LRBA) | Yes — existing loans unaffected | Loans established before the ban remain in place and can be refinanced |
| Commercial property (new LRBA) | Yes — fully available | Warehouses, offices, retail, medical centres — all eligible |
| Residential property (cash purchase) | Yes (no borrowing needed) | SMSFs with sufficient cash can buy residential without borrowing |
What Does This Mean for Your SMSF Strategy?
If you were planning to borrow through your SMSF to buy a house or apartment, that path is now closed for new arrangements. But commercial property borrowing remains fully available — and commercial property offers higher yields (5–7%), longer leases and the ability to buy your own business premises through your super fund.
What Should I Do Now?
- Review your SMSF balance — can you buy residential property outright?
- Consider the commercial property pivot — warehouses, medical suites, retail strips
- Access off-market opportunities through the Collings portal before they are publicly listed
- Get a GeeVee AI analysis of your target property and suburb before committing
Frequently Asked Questions
Does the 2026 ban affect my existing SMSF residential loan?
No. Existing LRBAs established before the ban are grandfathered — they remain in place and can be refinanced to another lender.
Can I refinance my existing SMSF residential loan after the ban?
Yes — refinancing an existing LRBA is permitted. Only new LRBA borrowing for residential property is banned.
Whether you’re buying your first investment property, building a portfolio, or exploring SMSF property investment, the Collings Property Platform gives you access to off-market opportunities, portfolio tracking, investment tools, and property insights powered by GeeVee AI. Join free today and start building your property future. collings.com.au/portal
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