You've been renting a factory somewhere between Truganina and Werribee for a few years now, and every quarter the rent cheque goes out to a landlord who isn't you. You've heard other operators in the west have bought their own premises through their self managed super fund, and now you're asking whether it's your turn.
This is one of the most common questions Fairmont gets from tenants across the western industrial corridor, and it deserves a straight answer, not a sales pitch. Buying business premises through an SMSF can be a genuine option for some operators. It can also be the wrong move for others, depending on the fund, the business, and the property itself. What follows is general information to help you understand the concept before you sit down with the professionals who can actually advise you.
Why this question keeps coming up in the west
Industrial land and factory space across Melbourne's western suburbs has tightened noticeably over recent years, and tenants who once had the upper hand in lease negotiations are now finding landlords calling the shots. Rents have moved, options have shortened, and more business owners are asking whether it makes sense to own the building their operation runs from rather than lease it from somebody else.
Owning your factory through super can align your rent with your retirement, but only if the fund and the property are genuinely suited to each other.
What buying through an SMSF actually means
An SMSF can, under certain conditions, purchase what the rules call business real property, which broadly means land and buildings used wholly for business purposes, such as a factory or warehouse. Your fund would own the property, and your operating business would lease it back at market rent under a proper commercial lease. The fund receives the rent, not you personally, and the property must be run at arm's length exactly as it would be for any unrelated tenant.
This is a heavily regulated area of superannuation law, with strict requirements around the sole purpose test, related party dealings, and how any borrowing inside the fund is structured. Getting it wrong can have serious consequences for your fund's compliance status, so none of this should be treated as a simple property purchase.
Your factory might be the right building. Your SMSF might not be the right buyer for it.
Factors worth weighing up before you go further
Where business owners go wrong
The Fairmont view, property first, structure second
Fairmont's job is to help you find and secure the right industrial property in the western corridor, whether that's a standalone factory, a warehouse with hardstand, or land for future development. Whether that property should sit inside your SMSF, be owned personally, or held through another structure entirely is a decision for your own accountant, financial adviser, or SMSF specialist, based on your specific circumstances.
This guide is general information only and is not financial, tax, legal or investment advice. Fairmont Property Group is a property agency, not a licensed financial adviser, and nothing here should be relied on as a recommendation about your superannuation or personal finances.
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Fairmont only sells and leases industrial property across Melbourne's western corridor and Geelong. That focus is deliberate. It means we know the buyers who are active right now and what they are prepared to pay.