With the end of SMSF residential lending and the changes to negative gearing and capital gains tax, the buyer’s agent industry is facing a complete shake-up, with only “tried and true” operators likely to survive.
The clock has been ticking on self-managed super fund (SMSF) residential lending with only three days left to the 10 August deadline.
While plenty of buyer’s agents have seen investors rush through the doors to make the SMSF deadline, demand is set to dry up in a couple of days as the ban comes into effect.
According to veteran buyer’s agent and founder of House Finder, Simon Loo, while the impact of the SMSF ban won’t be seen in the next five days, it will completely reshape the industry in the coming months.
“The shake-up I think is going to be very real, and we’re seeing that already. We’re already seeing businesses going down,” Loo told REB.
“There’s a lot of buyer’s agents and all industries like mortgage brokers; they’re just sitting around twiddling their thumbs now. They don’t have very much work to do.”
Data from the Australian Finance Industry Association showed that in FY2026, more than 16,000 new residential SMSF loans worth $10.3 billion were written, four times the Australian Taxation Office’s annual estimate of 4,000.
Those 16,000 investors could now be a shortfall, either changing their strategies or pausing their purchase altogether.
While the buyer’s agent sector has grown rapidly over the past decade, Loo said the current changes will expose businesses that relied on favourable market conditions rather than sustainable models.
He said that very specialised buyer’s agents targeting specific areas, industries, or property types will be at greater risk as investors become more cautious in their purchases.
“The ones that have typically targeted SMSF, of course they’re going to completely be decimated, at least for the time being.”
“Unless they change their ways or unless they have a slightly different approach, then they’re going to suffer.”
Buyer’s agents urged to go back to the fundamentals
While the end of residential SMSF lending will reshape the buyer’s agent landscape, Loo said it also presented an opportunity to refocus on delivering genuine investment advice rather than relying on a single client segment.
Loo said he had long questioned the strategy, with the latest reforms reinforcing the case for agencies to focus on helping clients build wealth outside super before considering an SMSF.
“I’ve been very vocal on podcasts about SMSF in general way before this. And I’m actually quite against SMSF.”
“For me, I never like to rely on my future or my family’s generational wealth... on any plan Bs or plan Cs. I’d rather give plan A a proper shot.”
Instead, Loo said investors should first maximise their borrowing capacity through traditional ownership structures, allowing them to leverage equity and continue growing their portfolios.
Rather than expecting investors to leave the market, he said buyer’s agents should prepare for clients changing the way they purchase property.
“I don’t think the appetite for investing will stop.”
“I think the money or the people that were thinking of doing SMSF will find ways to maybe buy in their own names again or buy in their own companies or buy in their own trusts.”
New research from Money.com.au found that the end of residential SMSF lending was unlikely to deter property investors, with many planning to shift their investment strategy rather than leave the market.
More than a quarter (27 per cent) said they intend to purchase residential property outside their super, while 26 per cent are considering commercial property through their SMSF, where borrowing remains available.
Only 12 per cent said they were planning to buy residential property outright within their SMSF using existing funds.
The research also found 82 per cent of Australians without an SMSF no longer see the value in setting one up if they can’t borrow to purchase residential property through the fund.
Loo said investors’ changing behaviour meant that buyer’s agents should return to the fundamentals of identifying quality opportunities.
“Our whole thing has always been to buy bargains, always buy below market value.”
“Bottom line, just go where people are choosing to move to permanently to live.”
He said affordable capital-city markets, supported by migration, employment and ongoing housing demand, will continue to provide opportunities for buyer’s agents who can adapt to the changing environment.
“Stick to major capital cities, stick to the bread and butter, stick to the affordable housing areas, and I think you’ll do fine.”
Loo also urged buyer’s agents to be mindful about how they market opportunities, warning against selling clients on speculative growth stories rather than long-term fundamentals.
“There’s just a lot of people, sharks out there, I guess you could say, trying to make a quick buck. They’re selling the dream of a brand new infrastructure or brand new roads, brand new hospital, or how this little town is going to be the next big thing.”
Similarly, while some investors may look to commercial property as an alternative, Loo said buyer’s agents should not assume it will become the next growth opportunity.
“If there’s more people piling into commercial assets, will it dilute the returns? Will demand start to drop? Will vacancy rates start to rise?”
“So I think a lot of people may just turn back to good old, regular residential investing.”
He said buyer’s agents should also avoid relying solely on property data to justify investment decisions, arguing it can be used to support almost any narrative.
“Data is very dangerous. I think it can be manipulated to form an agenda. If I choose bits of data, I can make Alice Springs look like the next hotspot.”
Instead, he encouraged buyer’s agents to prioritise long-term market fundamentals and help clients minimise risk.
“Now you just have to be very, very careful about where to put your money and not take unnecessary risks.”
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