Medical centres, GP practices, dental surgeries and allied health premises are among the most sought-after SMSF commercial investments in 2026. Healthcare tenants offer exceptional lease security — long terms, strong covenants, and tenants deeply invested in their locations — making medical property one of the most reliable income assets an SMSF can hold.
Why Medical Property Is Ideal for SMSFs
- Healthcare tenants provide outstanding lease security and covenant strength
- Long lease terms of 5–10 years with options are standard in the medical sector
- LRBA borrowing still available — medical property is not affected by the residential ban
- Business real property exemption applies — medical professionals can buy their own practice premises through their SMSF
- Gross yields of 5–7% with net lease structures where tenants pay most outgoings
- Defensive asset class — medical demand is non-cyclical and government-supported
The Medical Professional SMSF Strategy
This is one of the most powerful SMSF structures for GPs, specialists, dentists, physiotherapists and allied health professionals:
- The medical professional’s SMSF purchases their practice premises
- The practice pays market rent to the SMSF
- The practice claims rent as a tax-deductible expense
- The SMSF receives rental income taxed at 15% (or 0% in pension phase)
- On retirement, the property can be sold CGT-free in pension phase or retained as an income-producing asset
SMSF Medical Property — Key Numbers
| Metric | Typical Range |
|---|---|
| Entry price range | $500,000 — $5,000,000 |
| Gross rental yield | 5.0% — 7.0% |
| Typical lease term | 5 — 10 years with options |
| LRBA LVR | 60% — 70% |
| Business real property exemption | Available for medical practitioners |
Finding Off-Market Medical Property for SMSFs
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
Frequently Asked Questions
Can an SMSF borrow to buy a medical centre in 2026?
Yes. Medical centres and healthcare properties are commercial assets — the residential borrowing ban does not apply. SMSF LRBAs for medical property remain fully available.
Can a doctor or dentist buy their own practice through their SMSF?
Yes, under the business real property exemption. This is one of the most tax-effective SMSF strategies for medical and allied health professionals.
Are medical properties available off-market for SMSFs?
Yes. Many medical property transactions occur off-market — the Collings portal specialises in sourcing these opportunities for SMSF investors.
Find your next property with Collings
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