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I have two existing investment properties which I am looking to hold for the long term, basically to provide me with rental income in my retirement. If I set up a SMSF can I transfer these properties into the SMSF?

The properties are both 3 bedroom houses and have less than 60% LVR still owing on them. They currently have rental yields of 7% and 8% (based on the purchase prices).

Also, am I able to self manage these properties from within a SMSF?

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Regarding transferring a residential investment property into your SMSF, no you cannot do it. You cannot transfer residential property into your SMSF from a related party. You can only transfer Business Real Property (that is commercial or industrial property) into a SMSF from a related party.

You can buy new residential property inside your SMSF, and you can also borrow within the fund (using a non-recourse loan) to help you buy it, or you could buy it as tenants-in-common with your SMSF (that is you own say 50% in your own name and 50% under the SMSF).

Regarding self-managing the investment properties held in your SMSF, yes you can, but you should make sure all your paperwork is in order (all your t's crossed and your i's dotted). You can even charge your SMSF for managing the properties, but this should be at market rates (not more).

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