Melbourne
SMSF Commercial Property Loans in Melbourne
Melbourne is one of Australia's strongest SMSF commercial markets — particularly for trade-business owners in the south-east acquiring their own premises through their fund.
200+ lenders
On panel
25+ years
In commercial finance
ACL 502091
Australian Credit Licence
ABN 91 135 045 340
Registered broker
Melbourne's SMSF concentration is large and growing
Roughly 150,000 SMSFs are administered out of Greater Melbourne. The active commercial SMSF lender panel in Melbourne is competitive — Macquarie, Liberty, La Trobe, Thinktank, Sucasa and RedZed all actively write new business, with pricing currently 7.0–8.5% for prime Business Real Property scenarios. Major banks have largely withdrawn from SMSF lending; the specialist panel handles the volume.
Business Real Property is the dominant Melbourne use case
The most common Melbourne SMSF commercial transaction is a successful trade or manufacturing business owner buying their factory or workshop in Dandenong South, Hallam, Truganina or Hoppers Crossing through their fund. The structure: SMSF + bare trust acquires the property; operating business pays market rent to the SMSF; SMSF services the loan from rent + contributions. Over a 15–25 year working life this strategy frequently outperforms residential investment on after-tax fund returns while simultaneously removing landlord risk from the business.
Box Hill, Glen Waverley and the medical corridors drive professional volume
Beyond the trade-business archetype, Melbourne SMSF commercial demand is concentrated among medical, dental and allied health principals buying their strata suites in Box Hill, Glen Waverley, Camberwell, Hawthorn and the established eastern professional precincts. These deals are typically $1.5–3.5M, BRP structured, with 5–7 day completion timeframes once structure work is complete.
Recent scenarios we've funded
$2.1M factory, Dandenong South — Business Real Property
Two-director engineering business, combined SMSF balance $710k, currently paying $135k market rent. SMSF purchased through bare trust at 70% LVR ($1.47M) at 7.75% over 25 years. Business signed a 10-year lease back to the SMSF at the same rent. Net outcome: unchanged business cost; ~$114k/year of interest paid by SMSF from the rent it receives; principal builds the fund's equity in the asset.
$1.9M strata medical suite, Box Hill
Solo specialist physician with $640k SMSF balance, currently leasing premises at $115k. SMSF acquired the suite at 70% LVR ($1.33M) at 7.55%. Combined rent + $50k concessional contributions serviced the loan at 1.40× ICR. Twenty years to retirement, the asset transfers to tax-free pension phase.
$1.5M industrial unit, Truganina — investment
SMSF trustees seeking commercial exposure away from equities, no related business. Acquired tenanted industrial unit on 5-year lease to an unrelated logistics operator at $105k rent. 70% LVR ($1.05M) at 7.95% over 30 years. Liquidity buffer of $150k held post-settlement.
Lender policy in Melbourne
Melbourne SMSF commercial lenders cap LVR at 70% (75–80% for prime BRP at selected lenders). Minimum loan $250k, maximum typically $3–5M, specialists to $10M+. Minimum 10–20% liquidity post-settlement. Rates 7.0–8.5% prime, 8.5–10.0% harder profiles. Settlement 6–10 weeks given the structure work (bare trust, custodian, LBA documentation, related-party lease for BRP). The Victorian land tax regime affects the SMSF's net rental income — model land tax explicitly in serviceability.
Related
SMSF Commercial Loans in Melbourne — FAQ
Questions sophisticated commercial borrowers ask about this market.