How Much Property Can You Buy in Super With $200K? (SMSF Example)

With $200,000 in your Self-Managed Super Fund (SMSF), how far can you go in property investment? Here’s a practical breakdown of what’s possible in July 2025 under current lending and tax rules.

Borrowing Capacity with $200K Super Balance

Lender Terms

• SMSF lenders now offer up to 80% LVR for residential properties.
• You’ll need:
  • 20% deposit ($100,000 for a $500,000 property)
  • Liquidity buffer (e.g., 10% of the property value)
  • Remaining cash for setup and running costs

Estimated Purchase

• Property Value: $500,000
• Loan Amount: $400,000 via LRBA
• Interest Rate: ~6.49% p.a. (July 2025 average)
• Repayments: ~$2,700/month or $32,400/year

Income & Serviceability

• Rental Yield: 4.5% = $22,500/year
• Super Contributions: $20,000/year
• Total Income: $42,500
• Surplus After Loan: $10,100/year

Upfront & Ongoing Costs

Upfront

• Stamp Duty: $17,000–$25,000
• Legal, Loan Setup, SMSF Setup: $5,000–$7,000
• Total: ~$22,000–$32,000

Ongoing

• Loan Repayments: $32,400
• SMSF Admin & Audit: $2,000–$3,000
• Property Management: $1,575–$2,250
• Maintenance & Insurance: ~$5,000
• Total: $41,000–$45,000/year

Example Property

• Location: Parramatta (NSW), Sunshine (VIC), or Logan (QLD)
• Price: ~$500,000
• Rental: $400–$450/week
• Growth Potential: 3% p.a. = $645,000 value after 10 years

Key Risks

• Interest Rate Rises (Safe Harbour Rate: 8.95%)
• Rental Vacancies or Market Drops
• Compliance Penalties if misused
• Liquidity Strain during downturns

Final Verdict

A $200K SMSF can feasibly support a $500,000 property investment—but liquidity is tight. Maximising rental yield and contributions is key. For lower risk, aim for a $400,000 property or increase super contributions.

Get tailored advice at property tax advice.