SMSFs seeking more diverse investments can use unlisted property funds to gain access to a range of property asset classes, a property funds industry body says.

The ATO’s decision not to target the operation of limited recourse borrowing arrangements directly in its efforts to crack down on inappropriate uses of SMSFs to acquire property has been supported by a specialist fund manager.

Holding business real property inside an SMSF may not be as advantageous as it once was due to restrictions imposed by the transfer balance cap.