Recommendation needed

Hi everyone,

I would like to get some guidance and recommendations from you to help me to start my property development journey.
I have roughly $600K (from a trusted funds provider) available to invest, both of us prefer doing small property development. Since I’m living in Newcastle, so here is our main target.

I have been reading some real estate books, and doing research online, have a little bit of idea how the property development process is done. But since this is my first time to get into property development, I would still sincerely like to listen to your suggestions and recommendations, and I do have some questions would like to ask.

1. From your experience or knowledge, will $600k be enough to do a small property development of 4 ordinary townhouse? My research shows that it is possible to purchase a piece of land with an old house on it for sub $500k in a not the best but not bad suburb. Will apply for construction loans from financial institution. I have contacted a building company, who indicated to me that it cost roughly 180K or above, depend on different finish requirement to build one townhouse, including survey, design, DA application, construction etc. If this is the case, rough cost of completing the project will be around 1.25m. This is about 2 times of cash I have got available. So, I think this is possible. any comments?

2. What is a fair size for one townhouse, 150sqm, including garage? Currently I’m living in a 146sqm townhouse. The reason I ask this question is to save my time when searching for potential site. If 150sqm is a fair size for one townhouse, then total floor size for 4 townhouse would be 600sqm. If FSR is 0.75, that means I have to at least purchase a land with a minim lot size of 800sqm? If so, over 800sqm block in a good location, but sub 500k, maybe a challenge……

3. If the block is close to shopping center, maybe units is a good choice. My question is if the lower level is car port, upper level is units, will car port area be calculated as floor area? hopefully not, to provide more space for units.

4. What do I need to look at about drainage and sewerage pipeline on the block when I do inspection? Is there any thing need to be avoided in particular? I assume if pipeline runs in the middle of the block is not that good for construction? If it is located at a side of the block, but not too close to neighbour will be ideal?

5. Since I’m mainly looking at opportunities in Newcastle area, is there any good designer or building company can be recommended? I believe designers and building companies always have connections, so if I can have a good designer, should be able to get a good builder, vias-vers.

6. Any property development mentor here in Newcastle? I have joined property Meetup group in Newcastle, but seems like the organizer is no longer organize activities…… So, really want to meet up with someone who would like to share their valuable experience and knowledge.

Finally, please excuse me if my grammar is in a messy, since English is my second language. If above question is not clear to you, please let me know, I will try my best to reword it to make it clear. It is tough to live in a different culture country, let alone getting in to real estate industry……just too much things to learn from zero.

Thanks for your time and reply in advance. Hopefully my adventure will start from here :)

kind regards,
Damien