As Richard says, paying out a bad debt does not instantly remove the record from your credit file

http://www.mycreditfile.com.au/faq/

reads:

How long is the information held on my credit file?

• Credit applications and enquiries and overdue accounts are held on your file for five years
• Overdue accounts listed as a payment default are held for five years
• Overdue accounts listed as a Clearout are held for seven years
• Bankruptcy Act Information is held on your file for seven years (prior to January 1998, Bankruptcy Act Information was held for five years)
• Court Judgments are held for five years
• Writs & Summons are held for four years
• Identity information, which includes name, date of birth, sex, drivers license, address history, and linked names (if any) are held for the life of the credit file. This information is used to distinguish the credit file from others held in the database
• Purge dates are calculated on the date the information was added to the file, and are based on the time limits provided in the Privacy Act 1988
• Files are scanned each month and out of date information is automatically purged to ensure the files are accurate.

NB: Even when an overdue account or clearout has been brought up to date or paid in full, it will not be removed from your file.

All payment default listings remain on file for five years from the date of listing. All clearout listings remain on file for seven years. The fact that an account has become overdue, and then been paid becomes part of your credit history.

Paul Dobson who participates heavily on this forum might be able to help you.

http://www.webuyhousesdirectory.com.au/we-buy-houses/joint-venture-wanted/jv-property-partners.html

Unless you are buying the property for cash (and thus deal with the stamp duty yourself directly with your state revenue office), the bank normally pays the stamp duty on your behalf, so I suppose you'd have to speak to them.  If you can somehow arrange to pay the stamp duty on your credit card, be aware it might be treated as a cash advance, so be sure to deposit all the monies in your credit card account before the stamp duty is charged.  Otherwise you'll be paying heaps in interest.

$250 a week is only $13k a year.  That's a pretty meagre existence… especially when you consider from that you also have to pay council rates and insurance on both properties. 

Definitely acquiring 2 properties is an excellent start but not enough to retire on.

I'm not so sure about this – for three reasons. 

A single person would need $40k a year to live comfortably in retirement.  Let's say one of these properties was purchased in a SMSF and thus income was tax free at retirement.  That property must still pull in over $42k a year ($40k to live on, $2k for accounting fees, and some more for property maintance and vacancy coverage).  This equates to a property that rents today at $800 per week.  That's quite a return…. where in Melbourne are you thinking?

I'd also be worried about putting all my eggs in the one retirement fund basket.  If your tenant fails to pay rent when you're retired, you have NO MONEY.

The matter of becoming a millionaire in the future… a million dollars isn't very much today, and "in the future" it will be worth even less (ie a million dollars in a few years will buy you less things than it does today).

Thanks for clarifying Richard – I had thought you were suggesting the offset account idea wouldn't work on a PPOR converted to an IP and couldn't work out why.  Thanks for taking time to clear that up!

Indeed Nathan, indeed!

Hi Richard

I'd love to hear a bit more about this if you have a moment… not 100% sure you mean? 

I think you already know the answer to most of your questions.

Regarding hte $350pw… have you checked what similar accommodation is renting for on http://www.realestate.com.au/rent ?  $350pw sounds high for a student to me.

The other thing you might not have considered is that NAB might not be too keen to loan you 90% on student accommodation.  The % they are offering might be a lot less.  Further, lenders are not keen on financing dwellings that are less than 50sqm.

re the above, some of the ads are to offer the LEASE and some to offer the FREEHOLD.