An SMSF can borrow money to buy investments but the rules are complex and very strict on how this should be set up. It is generally advisable to engage a financial adviser or legal professional to help with setting up these arrangements.
To summarise the rules:
Please note: The repayment of the principal and interest of a limited recourse borrowing arrangement from your accumulation account will be a credit in your transfer balance account (leading to an increase your transfer balance account and a reduction in your available personal cap space) where the fund makes a loan repayment and as a result there is an increase in the value of the income stream. Importantly, this applies in relation to a limited recourse borrowing arrangement that arises under a contract entered into on or after 1 July 2017. Furthermore, refinancing a pre-1 July 2017 limited recourse loan may also remain exempt from this change if certain criteria are met.