23 Jun Why More Sydney Investors Are Looking at Property Through Their SMSF

The 2026 Federal Budget has a lot of property investors rethinking how they structure future purchases.

The proposed changes to negative gearing and capital gains tax are still subject to legislation, but they’ve already got investors, accountants and advisers talking about long-term strategy. One area getting a lot more attention in those conversations: buying residential property through a Self-Managed Super Fund.

Why The Sudden Interest?

Under the proposed reforms, negative gearing on established residential property bought outside super after 12 May 2026 would be restricted from 1 July 2027, if the legislation passes as drafted. Superannuation funds are excluded from these changes.

So if you’ve already got an SMSF in place, it’s no surprise you’re asking how property inside super compares to property held outside it, and whether it deserves a bigger role in your long-term strategy.

SMSFs won’t suit everyone. But the proposed reforms have certainly put property-in-super back on the table for a lot of our clients.

What You Need To Know Before Buying Property Through An SMSF

Property can be a genuinely powerful asset inside an SMSF, but it comes with rules that don’t apply to a normal investment purchase. The property has to be held purely to provide retirement benefits for fund members.

A few things that catch people out:

• You (or any related party) generally can’t live in it or rent it
• You generally can’t buy an established residential property from a related party
• Borrowing usually has to go through a Limited Recourse Borrowing Arrangement (LRBA), which works quite differently to a standard home loan

Given the complexity, this is absolutely a conversation to have with your financial adviser, accountant and lawyer before you decide whether it’s right for you. We’re not the ones to advise on structure, but we know the people who can.

What Makes A Good SMSF Investment Property?

Because these properties are often held for the long haul, picking the right asset matters just as much as getting the structure right.

The fundamentals don’t really change, super fund or not:

• Quality locations with enduring demand
• Strong tenant appeal
• Low vacancy environments
• Diverse local economies
• Access to transport, lifestyle amenities and employment hubs
• Proven long-term capital growth drivers

 

In Sydney, many SMSF investors continue to focus on established suburbs where land scarcity, infrastructure investment and owner-occupier demand support long-term value.

The goal was never just “buy a property.” It’s buying an asset that can carry the fund’s growth for years.

Why Due Diligence Matters

When you’re likely holding something for ten, fifteen, twenty years, the cost of getting it wrong is higher. Local market conditions, planned development, demographics, rental demand, all of it deserves a proper look before you commit. This matters even more in Sydney, where value can shift meaningfully street to street, let alone suburb to suburb.

How We Help SMSF Buyers

We’re seeing real interest from clients exploring property through their SMSF. We don’t give financial, tax or legal advice. But once your structure is sorted with your own advisers, we’re here to help you find, assess and negotiate the right asset.

Our job is the same as it’s always been: thorough research, expert negotiation, and due diligence that protects you, so you end up with a property that earns its place in your portfolio, whatever structure it sits in.

As the Budget debate continues, one thing won’t change: picking the right asset is still the decision that matters most.

Disclaimer

This article is general information only and has been prepared without considering your objectives, financial situation or needs. It does not constitute financial, taxation, legal or investment advice, nor a recommendation to establish an SMSF or acquire property through any particular ownership structure.

The measures announced in the 2026–27 Federal Budget are proposed measures only and may be amended before becoming law. You should seek advice from a licensed financial adviser, registered tax agent and/or legal adviser before making any financial, taxation or investment decision.