The situation in the bathroom looks like there is some serious mould going on with the walls.  You might require some new plaster in there.  Either way, definitely get a fan installed.  Preferably one that automatically turns on when the light is switched on, but also has the option to turn it on by itself (ie for the daytime when lights don't get turned on).  I'm a big fan of those IXL Tastic models (it's a 3 in 1 with fan, light and heat), though some might consider this to be overkill.  I don't like the older models as they seem to gather dust and filth, and I am too lazy to clean hehehe.  The IXL tastic seems to remain cleaner.

Great result 

It ultimately costs you money each time a tenant leaves – there'll be cleaning costs, costs associated with the agent re-advertising the property etc etc…. so ideally you don't have tenants shifting in and out too often!

If they have kids, they might prefer an end date that falls during school holidays

It depends on your income – whether you can service loan repayments on an additional property.

Where are you located?

A really great resource is the back pages of the "Australian Property Investor" magazine… where you can see the capital growth, rental yield, median price and vacancy rates by suburb.    

Be careful of towns that have only one industry or employer servicing the area (some examples include mining towns, or perhaps where a car manufacturer is the only business in town providing employment).  If anything happens to that company, or if they decide to move to another town… well, death to the suburb.

Follow the infrastructure.  If you know a new freeway, train line or train station, or Westfield Shopping Centre is going in, well… it's going to mean council KNOWS there will be growth.  Even Mister Coles and Mister Woolworths are good to keep an eye on.  They wouldn't open a new store unless they'd done their homework to ensure a sufficient customer base.

sounds to me like someone advised you to put all your eggs in one basket.  that's never a good idea.  better to spread your property cash amount a couple of properties i'd say.  if anything went wrong with your ONE property 10km from the cbd, your whole portfolio would be shot.  some examples:

– suburb suddenly becomes undesirable. hard to rent out. or cannot sell for more than purchased for
– suburb simply stays flat, and property doesn't go up in value in line with inflation
– some sort of issue that the insurance will not pay out on (eg natural disaster)
– if it is an I.P. : troublesome tenants not paying rent and trashing the place… or perhaps the place remains untenanted and not earning an income for a while..

Just as a side note, this is an example of why it is a good idea to keep finishes pretty basic in rental properties.  If you have an expensive finish, and the bond is insufficient to cover the damage, and the tentant won't pay the difference, and the insurance won't pay up because it is "normal wear and tear" and not "malicious damage", then you will be out of pocket.

If the company goes bust, the "guarantee" is worth squat.

Be careful of these rent guarantees.  Often the rent money is already built into the purchase price.

What sort of property is it?  A regular residential?  Or one of those serviced apartments?

The definition of "unit" seems to vary somewhat.  If it is a dwelling with no dwelling under or above it, great.  If it is a flat (with others above or below it), not great.

Getting finance on a studio, or on a property that is under a certain size, can be challenging.  Start chatting to the bank about this to understand the parameters you have to work in.  Additionally if finance is offered, you might find it won't be as high as 90% LVR (ie 90% of the purchase price).

In terms of capital growth, it'd be better to get an apartment with at least one if not two bedrooms, rather than a studio apartment.

Remember if you transfer a property into another name, you may have to pay stamp duty (AGAIN, after having paid it on the initial purchase).  As such, I think it would be better if your father loaned you money directly (in the amount of the deposit required plus stamp duty if needed), and then you get a loan with the bank yourself, and put the property in your name from day 1.

http://www.ato.gov.au/corporate/content.asp?doc=/content/00208572.htm&page=2&H2

"Purchases under contract, such as land, houses, business, shares, one-tonne utilities and boats, don't always result in the date of contract and the date of possession being the same . In these instances, your acquisition date is the time you enter into the contract (normally the date on the contract) and not the date you take possession or the date of settlement."

I'd give the ATO a call and discuss your precise situation to be sure.  Was there a separate contract for the construction?  Or was the entire purchase handled with the one contract?