If you’ve been involved in real estate investing for a while, you’ll know that one of the biggest challenges is choosing the right structure for your portfolio. That’s where options like a Self-Managed Super Fund (SMSF) or a real estate investment trust come into play. 

If you’re unsure how these structures work or how to use them to your advantage, don’t worry. At B.Invested, we break it all down in simple terms so you can unlock powerful investment potential. 

 

What’s the Deal with SMSFs? 

An SMSF is essentially your own super fund that you control. But here’s the exciting part—it’s not just for retirement savings. You can actually start buying property using SMSF funds and build a lucrative SMSF investment property portfolio. 

 

Here’s how it works: 

• You invest in property within your SMSF. 

• Your rental income is taxed at only 15%. 

• If you hold the property for more than 12 months, your capital gains tax drops to just 10%. 

• Once you reach pension phase, you can withdraw your super tax-free. 

 

That’s why using SMSF to buy property is increasingly popular among long-term investors. However, strict regulations mean the property must serve your retirement objectives—not personal use. 

More details from the Australian Tax Office 

 

 

Why Trusts Are a Game-Changer in Real Estate Investing 

Let’s move on to trusts. If you’ve heard of family trusts or discretionary trusts, but aren’t sure how they apply to investing in real estate, here’s the scoop. 

Trusts are legal entities where a trustee holds assets on behalf of beneficiaries. They offer: 

• Asset protection – property held in a trust is generally shielded from personal liability. 

• Tax planning – income from investment properties can be distributed among family members, potentially reducing your tax burden. 

• Ownership flexibility – properties in trusts aren’t linked to your personal name, offering anonymity and protection. 

In essence, trusts can be a powerful tool when purchasing investment property and scaling your portfolio with added security. 

 

SMSF vs Trust – What’s Best for Your Investment Property Strategy? 

The decision between an SMSF and a trust depends on your individual goals. 

 

When an SMSF Might Be Right: 

• You want to combine superannuation with investment property.  

• You’ve got a solid super balance or equity to roll over. 

• You’re looking for tax-effective, long-term growth through SMSF property. 

 

When a Trust Might Be a Better Fit: 

• You want to retain full control and flexibility over your income distribution. 

• You’re looking for ways to reduce your taxable income. 

• You plan to hold multiple properties or scale quickly. 

 

At B.Invested, we guide clients through both options, helping them align their strategy with their financial goals and legal requirements. 

Make These Structures Work for You 

 

Whether you’re using SMSF to purchase property or considering purchasing investment property through a trust, the key is to set up the right structure from the start. 

Here’s how we can help at B.Invested: 

• Assess your current financial position and equity. 

• Provide expert advice tailored to your goals. 

• Assist with structuring your real estate investing journey tax-effectively. 

• Help you scale your investment property portfolio with confidence. 

 

Ready to Supercharge Your Property Portfolio? 

At the end of the day, tools like SMSF investment property and trusts aren’t just for wealthy investors—they’re accessible to anyone serious about investing in real estate smarter. 

If you’re ready to explore buying property in SMSF or want to find out whether a trust structure suits your goals, B.Invested is here to help.