5 Things They Won’t Tell You About Property in Super (But Should)

Why SMSFs are becoming a smart haven from sharemarket chaos

When markets dive, most Australians watch their super balances shrink — and feel powerless. But a growing number of investors are asking: Is there a better way?

Enter the Self-Managed Super Fund (SMSF), and with it, the strategic power of direct property investment. While traditional funds ride the rollercoaster of equities, SMSF trustees are quietly building portfolios grounded in bricks and mortar.

But here’s the thing — most people don’t know just how effective property in super can be. Here are five truths you won’t hear at your average barbecue or from your retail super provider.

1. Volatility Doesn’t Retire When You Do

Superannuation doesn’t magically stabilise when you hit 60. In fact, if you’re invested in a typical balanced or growth fund, up to 60–80% of your money could still be in shares.

By contrast, a well-chosen property inside an SMSF delivers ongoing rental income and is far less susceptible to short-term sentiment swings.

2. Rent Doesn’t Panic Sell

Tenants don’t panic during market downturns — they keep paying rent. That steady income can be a godsend in times when listed assets are falling.

• Rental income within an SMSF is taxed at just 15% (or potentially 0% in pension phase)

• Commercial properties leased to your own business can create a double win — stability + control

Meanwhile, many retirees are discovering the hard way that dividends are the first thing to be cut when markets turn volatile.

3. Banks Lend to SMSFs for a Reason

Limited Recourse Borrowing Arrangements (LRBAs) allow SMSFs to purchase property with borrowed funds. That’s a big vote of confidence from lenders — and a signal that this strategy isn’t fringe or risky when done right.

According to the ATO, nearly 20% of all SMSF assets are now invested in property, and the proportion is growing steadily.

Yes, borrowing must be structured carefully. But done properly, it allows you to:

• Access higher-value assets sooner

• Increase returns through leverage

• Lock in long-term rental income and capital growth potential

  
  

4. You’re the Fund Manager Now

Unlike retail funds, SMSFs hand you the reins. That can be intimidating — but it’s also empowering.

When you control the investment, you can:

• Choose an asset you understand (e.g. local property)

• Adjust your strategy in response to changing conditions

• Avoid exposure to sectors or assets you don’t believe in

  
  

And with expert guidance and ongoing support, you're not navigating it alone. WT Capital specialises in helping Australians structure SMSFs to invest in property — from setup to purchase to compliance.

5. Diversification Isn’t Just Stocks and Bonds

One of the biggest myths in finance? That diversification ends with stocks, bonds, and maybe a sprinkle of cash.

But true diversification includes non-correlated assets — investments that behave differently to shares. Property fits the bill.

Over the past two decades, Australian residential and commercial property markets have outperformed the ASX during periods of volatility, offering both capital growth and defensive characteristics.

Final Thought: Want Peace of Mind in Retirement? Build It with Bricks.

In times of market noise, property investment through your super can offer quiet confidence. It won’t make headlines like a tech stock boom — but it also won’t give you heartburn when markets dive 10% in a week.

If you’re looking to take control, reduce exposure to market panic, and invest in something tangible, SMSF property might be the move your future self will thank you for.

Want to learn more about buying property through your super

Speak to the team at WT Capital — we help Australians invest in property with confidence, clarity, and compliance.