Case Study: Turning Rent Into Long-Term Wealth for Business Owners

For many business owners, leasing a workspace feels like the easiest option. But over time, rising rent can become a significant cost, with little to show for it long term.

This was the situation for David and Priya, business partners running a growing architectural practice. They had been leasing their office for years and were increasingly frustrated that each rent increase was helping build a landlord’s wealth, not their own.

They came to us wanting to explore whether there was a smarter, more strategic way to own their premises while also planning for the future.

Exploring the right structure

After reviewing their broader financial position and goals, and working alongside their accountant and financial adviser, one option stood out: purchasing their office through a Self Managed Super Fund.

David and Priya did not yet have an SMSF in place, so with support from Wheelhouse Advisory, an SMSF was established. Their existing superannuation balances were rolled into the new fund, creating a solid deposit to get started.

How the purchase was structured

Once the fund was established, we helped arrange an SMSF loan under a limited recourse borrowing arrangement. This meant the loan was secured only against the property itself, protecting the rest of their superannuation assets.

The result was a structure where:

• Their business now leases the premises at market rent
  
• That rent flows directly into their own super fund
  
• The property supports both their business operations and their long-term retirement strategy
  

Instead of paying rent to an external landlord, David and Priya are now contributing to their own future.

The outcome

This approach has given them:

• Greater stability for their business
• Control over their workspace
• A tax-effective way to grow wealth inside super
• Alignment between their business and retirement goals

This strategy is not suitable for everyone, and it requires careful planning and the right advice. But for the right business owners, it can be a powerful way to turn a recurring expense into a long-term asset.

Next Steps

If you’re a business owner wondering whether owning your premises through super could make sense for you, our team at Entourage Property Advisory, alongside Nuestar and Wheelhouse Advisory, can help you explore the options.