SMSF Property Investing Gains Ground Among Younger Australians

Buying Property in Super: What Most Australians Under 30 Still Don’t Know About SMSF Lending

Kingsgrove, Australia – May 8, 2026 / Trelos Finance /

Trelos Finance, operating through the financial services platform onpg.com.au, has published new research identifying a significant awareness gap around SMSF property investing among Australians aged 18 to 30. The findings, released this month by mortgage broker Nick Lissikatos, reveal that the majority of younger Australians remain unaware that their superannuation can be used to fund direct property investment through a self-managed super fund – a gap that Lissikatos argues is costing this demographic years of compounding growth.

Younger Australians Missing a Legal Wealth-Building Pathway

The research points to a structural disconnect between growing property investment interest among younger Australians and their understanding of the mechanisms available through superannuation law. While SMSFs have long been used by older, higher-net-worth investors, Trelos Finance found that awareness among the 18-to-30 age group remains low despite the strategy being legally accessible to any Australian with sufficient superannuation savings.

One factor compounding the problem is fund fragmentation. Many younger workers accumulate multiple superannuation accounts across different employers, each carrying its own set of administration fees. Consolidating these accounts into a single SMSF creates a larger investable pool – one that may reach the threshold required to make buying property in super a financially viable strategy.

SMSF lending rates currently sit just 75 to 100 basis points above standard investment loans, a margin that has narrowed considerably over recent years as more lenders have entered the limited recourse borrowing arrangement market. This compression makes the cost of SMSF lending more comparable to conventional investment lending than many prospective investors realise.

Self-Employed Owners Gain a Distinct Structural Advantage

Among the key findings, the research highlights a specific opportunity for self-employed Australians. Under ATO-compliant structures, a business owner can purchase their commercial premises through their SMSF and subsequently pay rent directly to the fund. This arrangement converts what would otherwise be a standard business expense into a tax-advantaged contribution to personal retirement wealth.

The rent paid into the fund is taxed at the concessional superannuation rate of 15 percent during the accumulation phase, rather than at the individual’s marginal tax rate. For business owners in higher income brackets, the compounding difference over a decade or more can be material.

“Most self-employed clients we speak to have never been told they can buy their own business premises through super and pay rent back to their fund,” said Nick Lissikatos, Mortgage Broker at Trelos Finance. “When we model this out over 10 to 15 years, the tax savings alone can run into six figures – and that is before accounting for any capital growth on the property itself.”

Compliance Structures Are Non-Negotiable

Despite the accessibility of SMSF property investing, Trelos Finance is clear that compliance requirements are not optional. The ATO imposes strict rules governing what SMSF trustees can and cannot do with fund assets. Residential property acquired through an SMSF cannot be occupied by the fund member or any related party, and the property cannot be rented to family members – conditions that carry significant penalties if breached.

A properly structured SMSF property transaction requires a compliant trust deed, independent legal advice, and a limited recourse borrowing arrangement that ring-fences the loan against other fund assets. Trelos Finance coordinates this process end-to-end, working with specialist SMSF solicitors, accountants, and lenders to ensure clients meet ATO requirements before any funds are committed.

The research also notes that the cost of non-compliance – including potential fund disqualification and forced asset liquidation – far outweighs the administrative cost of setting up a correctly structured arrangement from the outset.

Trelos Finance is currently working with a cohort of clients under 35 who are in the early stages of consolidating super accounts ahead of entering the SMSF lending market, with several transactions expected to settle before the end of the current financial year.

About Trelos Finance

Trelos Finance is an Australian mortgage broking firm operating through onpg.com.au, specialising in residential and commercial lending, SMSF lending, and investment finance strategies. The firm works with individual investors, self-employed business owners, and wealth-building clients across Australia, coordinating lending, legal, and compliance specialists to deliver structured finance outcomes.

Learn more at Trelos Finance