Residential property funds are becoming more popular across Australia as more investors look for new ways to enter the property market. With high prices, rising holding costs and tighter regulations, many people are now exploring investment options that do not require buying and managing a single home. This shift is changing the way investors think about property and it has important benefits for those building in NSW.
If you are an investor, developer or someone planning a multi-dwelling build, this trend is worth understanding. It is also worth knowing how builders like Kurmond Homes fit into this change.
What are residential property funds
A residential property fund is a structure where many investors pool their money into a trust. The trust then buys and manages one or more residential properties. Instead of owning a single home yourself, you own units in the fund that represent your share of the portfolio.
Your return usually comes from two things: rental income and the increase in value of the fund assets over time. The fund manager handles tenant management, maintenance, compliance and all day to day tasks.
Residential property funds have been common in commercial real estate for years. They are now growing quickly in the residential market because investors want exposure to housing without the costs and responsibilities of being a landlord.
Why residential property funds are becoming popular in NSW
NSW has seen strong price growth in recent years and the entry point for direct ownership has become harder for many investors. At the same time, there are more rules around renting, maintenance, tax and compliance. Many small investors feel the pressure.
Residential funds appeal because:
- The entry cost is lower than buying a house on your own
- You do not deal with tenants or repairs
- There is less risk because funds hold more than one property
- You can diversify across locations and property types
- You receive passive income without property management tasks
- You can invest without having to secure a large loan
For many investors this approach offers a simpler way to stay in the property market. The structure also suits investors who want long term stability but do not want the stress of hands-on management.
What are the benefits for investors
If you are an NSW investor, here are the main advantages of residential property funds:
- Lower upfront cost because you buy fund units rather than an entire home
- Professional management and compliance by the fund manager
- Reduced financial risk because the assets are spread across a portfolio
- Regular income distributions
- No direct involvement with tenants, maintenance or council issues
- Easier diversification, especially for investors who want exposure to more than one city or region
Many funds also target modern homes with strong rental demand. This includes duplexes, townhouses and multi dwelling projects which often suit families, professionals and multi generational households.
What to watch out for
It is important to understand the limitations too. You do not choose the individual properties the fund buys and you cannot control how they are managed. Fund fees also vary and they can reduce overall returns. Some funds are unlisted which can make them harder to exit. The success of your investment depends on the experience and decisions of the fund manager.
Investors should always do proper checks before joining any fund. This includes reading the fund documents, understanding the strategy and reviewing the track record of the operator.
How this trend affects property developers in NSW
The growth of residential property funds is changing the way new homes are planned and built. More capital is moving toward multi dwelling developments because they produce better rental yields and give fund investors more stability.
This shift increases demand for:
- Duplex builds
- Dual occupancy homes
- Multi generational homes
- Townhouses and attached dwellings
- Homes that appeal to long term renters
- Well designed homes near transport and services
Developers and builders who understand these investment needs can create homes that perform well in both rental and resale markets.
How Kurmond Homes Supports Investors:
Kurmond Homes works with investors and families to deliver practical, rental-ready homes that align with investment trends.
How we help:
- Investor-focused designs: Duplex, dual occupancy and multi-living layouts with strong rental appeal.
- Site feasibility: Assess zoning, lot size and local conditions to ensure suitability.
- Quality builds: Durable workmanship and finishes for long-term returns.
- Expert guidance: Support from planning to handover, including layouts, approvals and timelines.
Final Word
Residential property funds are shaping a new chapter in the NSW property market. They are giving investors more choice and creating steady demand for well designed, rental ready homes. For those who want to build their own long term asset, this shift highlights why quality design, smart layouts and strong locations matter more than ever.
By working with Kurmond Homes, you can plan and build a home that meets both your lifestyle goals and the expectations of a changing investment landscape. Whether you are exploring a duplex, dual occupancy or a flexible family home, Kurmond can guide you through each step.
If you want to discuss how this trend could fit your investment goals, we are here to help.
Call us today: 1300 764 761 | kurmondhomes.com.au
