Thank you, Marisa – I was hoping you’d answer, I’ve seen some of your replies to other questions and it looks like you got the small development game figured out.

being the female developer-wannabe more than anything, I am in the information gathering stage, which is driving my partner nuts (he will just have to thank me when we retire in the Carribean!). I have decided to concentrate on just two areas and maybe even one, so that I can understand those markets well. It is incredibly confusing, still. For example, I have developed a spreadsheet of blocks in Oakleigh of about the same size and quality and compared their per m2 prices – and those in the last 3 months fluctuated wildly, from 1400-1600+ per m2. My rough strategy is to wait until winter, when I feel there will be more opportunities to snatch a deal, and get a block at the lower end of this per m2 range (of course, in consultation with a council planner, to make sure I can subdivide). Then I plan to team up with an architect friend, an older woman who’s been at this game for many years, to get the DA done.

I am terrified at losing money, because I don’t have too much of it saved up (although an amazing cashflow, thanks to my new job). At the same time, I don’t want the fear to paralyse me to the point of sitting on my hands (and pile of cash) till it’s too late. That happened to my sister, who’s been “looking to buy” since 2008 and now can’t afford a house.

I have one specific question – how long would you wait to buy in Melbourne? If I buy this winter, I will only have about a 10% deposit and cash for the stamp duty, etc. Is it wise to pay LMI, or should I wait? Should I sell one of our 2 apartments, or just refinance it and get closer to paying 20% down, while negatively gearing the apartment?

Thanks again, your advice is very much appreciated.