Due diligence for SMSF property is more complex than for personal property purchases. You are not just checking the property — you are checking compliance, yield, cash flow, tenant risk and the fund’s ability to hold the asset long-term. This checklist covers everything an SMSF investor needs to verify before signing a contract in 2026.

SMSF Property Due Diligence Checklist

Compliance Checks

• Is the property eligible for SMSF ownership under the SIS Act?
• Is it residential (cash only in 2026) or commercial (LRBA available)?
• If commercial, is it business real property?
• Is there any related-party transaction risk?
• Has your SMSF accountant confirmed the purchase is compliant?

Financial Checks

• What is the gross and net yield?
• What are the outgoings (rates, insurance, management, maintenance)?
• What is the cash flow impact on the fund (monthly surplus or deficit)?
• Does the fund have sufficient liquidity after purchase for contributions, expenses and emergencies?
• What is the capital growth outlook over 5 and 10 years?

Property Checks

• Building and pest inspection completed
• Title search and encumbrances reviewed
• Zoning and planning overlay confirmed
• For commercial: lease reviewed by a solicitor, tenant covenant assessed, make-good obligations confirmed
• For industrial: contamination check completed

Legal and Structural Checks

• For LRBA: bare trust structure established before settlement
• Contract reviewed by SMSF-specialist solicitor
• Insurance (building, landlord, public liability) in place at settlement

Frequently Asked Questions

What is the most common SMSF property due diligence mistake?

Failing to check SIS Act compliance before signing the contract. Once you sign, unwinding a non-compliant SMSF purchase is extremely costly and may trigger ATO penalties.

Do I need a special building inspection for commercial SMSF property?

Yes — commercial building inspections are more detailed than residential, and should include structural, mechanical, electrical and (for industrial) environmental checks.

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