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.
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