I’d probably stick with the commercial lease unless you leased it separately from the industrial property. It would be a condition of any licence or sublease that the sublessor be required to enter a residential lease with the tenant of the house. CYA.

Stupid question here, is it a gross or net lease ie who is paying the insurance? If the lease is net ie you pay all outgoings, (and the lessor being a scotsman – apologies to the Scots), I would be going for the lowest possible excess to minimise my out of pockets and maximising the tenant's cost of insurance. It is all about structure and what isn't in the lease as much as what is listed.

I would be carefully going over the outgoings, insurance provisions and the like to determine what might bite you on the backside.

Just make sure that they don't exceed the maximum wattage for the light fitting.

Alternatively do you a 6 year lease with a break clause allowing you to exit at yrs 2 or 4?

Generally speaking though it is a 2 year lease with agreement to extend on the same terms for another 2 yrs + 2 more if you choose exercise the option at the appropriate time.

Read 'Bankstown death-trap in the making'.

Has been discussed plenty of times previously – unlikely to happen (again).

Any submission to council will require the owners consent, if you have joint ownership both owners will need to sign the application.

My 2c, there's little chance of 10% + median price increases for several reasons:

1. affordability (unless wages increase substantially)
2. lack of new projects coming out of the ground (ie supply isn't going to go thru the roof so there is no stock of new property which will be driving prices upwards)
3. lack of new (green) blood in the market – migration levels aren't going to change a great deal
4. election process puts a dampener on sales activity until the outcome is known (ie uncertainty slows the market not increases activity).

As the entry point for units is much lower than houses, you may benefit from stamp duty exemptions, lower holding costs etc. So a buy, renovate & sell approach or buy & hold can both work.

I agree with Shahin on several points: diversify, long term strategy etc. If you do purchase inside your smsf you cannot live in the property but it may allow you to consider selling your other properties to diversify.