Don't ignore potential pitfalls of SMSF property

Michael LaurenceDecember 17, 2020

With certain exceptions, preserved superannuation benefits must remain in the super system until members permanently retire after reaching their “preservation age” (currently at least 55) or turning 65 (even if still working).

The locking of benefits into superannuation could be seen as an advantage or disadvantage by some fund members.

Many SMSFs aim to hold on to their properties at least until retirement.

Some SMSF members will produce better negatively-gearing tax breaks from gearing a property in their own name rather than through their fund.

Much depends on the circumstances.

Another possible pitfall is that ownership of a costly property may limit a fund’s ability to adequately diversify their portfolios to spread its risks and opportunities.


This article is part of the free eBook: 21 do’s and don’ts for SMSF property investors.

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