The ultimate question for every SMSF property investor is whether the investment will deliver enough retirement income to live on. This calculator helps SMSF trustees project retirement income from property, understand how much property wealth they need, and decide whether to hold, sell, or pivot to commercial in 2026.
How Much Super Property Income Do You Need in Retirement?
| Desired Annual Retirement Income | Required Net Property Yield at 5% | Required Net Property Yield at 4% | Required Net Property Yield at 3% |
|---|---|---|---|
| $50,000 per year | $1,000,000 in property | $1,250,000 in property | $1,667,000 in property |
| $75,000 per year | $1,500,000 in property | $1,875,000 in property | $2,500,000 in property |
| $100,000 per year | $2,000,000 in property | $2,500,000 in property | $3,333,000 in property |
| $150,000 per year | $3,000,000 in property | $3,750,000 in property | $5,000,000 in property |
Commercial vs Residential Property for Retirement Income
The 2026 borrowing ban makes this comparison starker than ever. A $1,000,000 residential property in Melbourne generates approximately $25,000–$35,000 in net rental income per year (2.5–3.5% net yield). The same $1,000,000 in a commercial warehouse generates $50,000–$65,000 per year (5.0–6.5% net yield). For retirement income purposes, commercial property is significantly more efficient.
Frequently Asked Questions
Should I sell my SMSF residential property and buy commercial before I retire?
This is one of the most common questions SMSF trustees are asking in 2026. The answer depends on your property’s current value, the capital gain, how far you are from retirement (and therefore whether you will be in pension phase when you sell), and the commercial property opportunities available to you. For many SMSF investors, selling a low-yield residential property and pivoting to a high-yield commercial property — particularly if done in pension phase where CGT is 0% — is a compelling strategy. Speak to an SMSF-accredited financial adviser before making this decision.
Can I move into my SMSF property when I retire?
No. SMSF residential property cannot be occupied by fund members or related parties at any time — before or after retirement. SMSF commercial property can be used by a related business at market rent, but not as personal residential accommodation. This rule is absolute and the penalties for breach are severe.
What happens to my SMSF property when I die?
SMSF property passes to your beneficiaries according to your binding death benefit nomination. The property can be sold and the proceeds distributed, or transferred to a reversionary pension for a surviving spouse. Estate planning for SMSF property is complex — specialist advice is essential.
Whether you’re buying your first investment property, building a portfolio, or exploring SMSF property investment, the Collings Property Platform gives you access to off-market opportunities, portfolio tracking, investment tools, and property insights powered by GeeVee AI. Join free today and start building your property future. collings.com.au/portal
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