“If [investment] doesn’t have that daily liquid element, SMSF practitioners need to ensure their client is very clear on what the exit is and it needs to be written in favour of investors,” said Mr Stacker.

The SMSF trustee should be in control of the decision making, he said.

“It shouldn’t come down to a vote where the majority wins,” Mr Stacker said.

There are, however, some advantages to illiquidity since investors will not “rush to the door if times get tough”.

“They realise they’re still invested in a good quality property and that the main objective [of the investment] is to provide a steady income to them,” he said.

“Over a period of time that income accumulates quite significantly and they can still have a small amount of total return coming from capital growth.”