The major compliance issues to consider are:

1. The investment strategy of the SMSF

2. Restriction on asset acquisition from related parties

        – is the property inside or outside super already?

       – is the property owned by a related party?

3.  investments must be at arms length

4. In-house assets restrictions 

5. Borrowing limitation of SMSF entities

4. Is the sole purpose test satisfied?  (i.e not considered as carrying on a business within the SMSF)

As you can see there are quite a few hoops to jump through. If you can tick all those boxes then you may be able to do a property development with your SMSF