Example: "If you invested $500,000 in BHP shares, there is nothing you can do directly to influence to increase the value of your investment, its all up to the company directors, this is great if you want an investment where you don't have any input. However, if you want a bit more influence, with an investment property, you can influence the value of your investment by doing small or major renovations, block spliting, or adding additional accomodation. When the companies are having a hard time like during the GFC, they will cut share dividends which you have no control, with an investment property you control the rental income." The downside of property is that it has higher cost like stamp duty, real estate agent fees and insurance etc. Property is also illiquid meaning it takes time (weeks or months) to sell a property and you cannot just sell a porttion of the property.
Note: The example above is not meant to be use as personal financial advice, only as a general example. If you are intending to purchase an investment property in a SMSF, there are strict rules and guidelines set by the ATO that the Trustee needs to follow. There are many things you can do if the property is held outside of Super that a SMSF cannot do. If the property is held in a SMSF, there is restrictions imposed by the ATO on improving the investment property while there is a loan in place (ATO SMSFR2012/1).
There are risk and benefits with any investment, property has advantages and disadvantages, that is why it is cruicial to get appropriate advice for your personal circustances.
Research from AMP Capital and Russell Investments shows that Australian residential property and Australian shares have comparable returns over the long term. (Please note that past performance is NOT indicative of future performance).