Australian property values are softening as rising interest rates and inflation take their toll. However, the cyclical nature of the property market means there will be plenty of opportunities for SMSF investors.

The last time we saw significant falls in house prices was way back in the early stages of the pandemic in 2020. However, Cory Bannister, Chief Lending Officer at La Trobe Financial notes "the cyclical nature of the Australian property market means there will be plenty of opportunities for SMSF investors, who are largely insulated from any broader property price falls".

Bannister lists several reasons for this, including that SMSFs:

• do not typically prefer high end property where the biggest dips have been;
• rental returns are sky-rocketing due to record low vacancy rates;
• are less affected by inflation because mortgage repayments aren't made from take-home pay;
• are, by definition, a long-term retirement investment; and
• are not limited to residential investments which include owner-occupancy rules.