SMSF commercial property loan · Medical practices
SMSF commercial property loan for medical practices
Medical practice finance is lending for GP and specialist practices, covering diagnostic equipment, consulting-room fit-outs, practice purchases and the commercial premises a practice trades from.
How a smsf commercial property loan works for medical practices
Practitioners frequently buy their clinic premises inside a self-managed super fund and lease it back to the practice at market rent. Done properly this puts rent into your own retirement savings rather than a landlord’s, and the property sits in a concessionally taxed environment. The structure has strict rules: a limited recourse borrowing arrangement, a bare trust, arm’s-length lease terms and larger deposits, usually 30–35%. It needs your accountant and a licensed adviser involved from the start, and we work alongside them rather than around them.
The cash-flow pattern we plan around
Steady weekly Medicare and patient billings on a short settlement cycle, punctuated by large one-off capital events such as fit-outs, equipment or a practice purchase.
What medical practices typically fund
- Diagnostic and imaging equipment
- Consulting-room fit-out and expansion
- Buying into or acquiring a practice
- Purchasing the practice premises
- Practice management software and IT
SMSF commercial property loan for medical practices: the numbers
| Typical amounts | $200,000 – $5,000,000 |
|---|---|
| Term | 60–360 months |
| Indicative rates | 7.2% – 9.9% p.a. |
| Repayments | Monthly |
| Speed | 4–10 weeks including trust deed review |
| Documents medical practices usually need | ABN, AHPRA registration and practice structure details · Two years of practice financials or personal tax returns · Equipment quote, contract of sale or fit-out schedule |
Rates shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
Key terms
Medical equipment finance
Medical equipment finance is secured lending for clinical equipment such as ultrasound machines, imaging systems and examination fit-outs, generally offered to registered practitioners on longer terms and lighter documentation than standard commercial equipment finance.
Practice purchase finance
Practice purchase finance is lending used to buy an existing medical practice or a partnership share in one, assessed on the practice’s billings and the incoming practitioner’s registration and earning history.
What is an SMSF commercial property loan?
An SMSF commercial property loan is borrowing by a self-managed super fund to acquire commercial property under a limited recourse borrowing arrangement. The property is held in a separate bare trust and the lender’s recourse is limited to that asset.
What is a limited recourse borrowing arrangement?
A limited recourse borrowing arrangement is the structure superannuation law requires for SMSF borrowing. The asset is held on trust for the fund and, on default, the lender can recover only against that asset and not the fund’s other investments.
Can an SMSF buy the premises my business operates from?
Yes. Business real property is an exception to the rules restricting acquisitions from related parties, so a fund can buy premises used wholly and exclusively in a business. The business must lease it back at market rent under a written arm’s-length lease.
What deposit does an SMSF property loan need?
Lenders generally cap SMSF commercial lending at 65–70% of the property value, so a deposit of 30–35% plus costs is required. The fund must also retain a liquidity buffer after settlement.