Investment properties outside of your SMSF

We have an investment property outside of our SMSF. We still have a mortgage on it. Can you please explain the options available to transfer the property into our SMSF?

We can pay off the balance on the loan from funds outside of super.

Can we withdraw a lump sum from our SMSF to pay off the mortgage, as our fund is in pension mode?

Would it create a tax liability?

A: You can’t transfer your investment property to your SMSF. There are no exceptions for residential property.


If your SMSF Trust deed allows it, you can usually commute an account based pension and withdraw it as a lump sum. The lump sum can then be used to pay off the mortgage.


Hope this helps.



Read Answer