Limited Liquidity: Property investments can be illiquid, meaning it may take time to sell the property and access funds in emergencies. Repayment Risks: SMSF loans are subject to interest rates and market fluctuations. Ensure your fund has a solid repayment strategy to mitigate risks associated with loan repayments. Compliance Obligations: SMSFs are subject to strict compliance rules and regulations. Time and Effort: Managing an SMSF can be time-consuming; there’s a lot of administration involved. Property Risk: The property may decrease in value if you do not purchase the correct asset. Loan Repayments: The SMSF may not have enough cash flow to cover the loan repayments in a high interest rate environment.