Self Managed Super Fund (SMSF) property rules permit you to invest in all types of property, including residential, commercial and industrial. You need to consider what is the best property class for you and abide by the rules. The permitted types of investment are direct real property, listed trusts, shares and commemorative coins. There are also rules regarding borrowing by an SMSF. An SMSF can borrow money to purchase a single acquirable asset as long as the fund trust deed permits it and the asset is held in trust for the SMSF. The trustee must comply with the 'arm's length' and 'sole purpose' tests. Also, the holiday house rule applies, and there are restrictions on alterations to residential property. These are just some of the general SMSF real estate rules that you need to be aware of when investing in property using your self-managed super fund.