Can SMSFs Buy Investment Property in 2026? — Complete Guide
Yes — SMSFs can still buy investment property in 2026. The new residential borrowing ban does not prohibit SMSF ownership of investment property. It prohibits new borrowing to fund that purchase. Here is everything you need to know.
Residential Investment Property
SMSFs can still buy residential investment property — houses, apartments, townhouses, units — using existing fund cash or assets. What is no longer permitted is taking out a new LRBA (SMSF loan) to fund the purchase. If your fund has the assets, you can still buy.
Commercial Investment Property
SMSFs can still buy commercial investment property — and may still be able to borrow via an LRBA to do so. This is the most important distinction in 2026. Warehouses, offices, retail assets, medical centres and industrial properties remain available as SMSF investments, potentially with leverage.
What Type of Property Should My SMSF Buy in 2026?
| Property Type | Can SMSF Buy? | Can SMSF Borrow? | GeeVee Verdict |
|---|---|---|---|
| Residential house | Yes (cash only) | No (new LRBAs banned) | Viable for well-funded SMSFs; seek off-market for best value |
| Apartment / unit | Yes (cash only) | No (new LRBAs banned) | Inner-city units offer strong yields for cash-funded SMSFs |
| Warehouse / industrial | Yes | Potentially yes | High yield, strong demand; top strategy for 2026 |
| Office | Yes | Potentially yes | Selective — inner suburban offices outperforming CBD |
| Retail / shopfront | Yes | Potentially yes | High-street retail strong; avoid large format retail |
| Medical centre | Yes | Potentially yes | Exceptional SMSF asset — long leases, government-backed income |
| Business premises | Yes | Potentially yes | The classic SMSF strategy — buy your own business premises |
The Off-Market Advantage for SMSF Investors in 2026
Whether you are buying residential property with cash or commercial property with or without borrowing, access to off-market opportunities gives you a pricing advantage that is difficult to quantify but consistently powerful. Properties acquired before public listing often trade at a discount — and for an SMSF buying without leverage, that discount can be the difference between a viable and non-viable acquisition.
Whether you are navigating the SMSF borrowing ban, searching for your next off-market acquisition, or building a new SMSF property strategy, 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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