Well great responses it appears there is mixed feelings about CG and CF+ve properties neither is right or wrong probably a good  idea to have a mix of both, today I put an offer  to buy a house where it has the potential to subdivide and put 2 courtyard homes of approx 350m2, I've done the dd numbers all stack up, good thing about this property is while I wait for approvals it's almost neutral cf and when I build the 2 I may  keep both or sell one depends on cf, I feel a lot better now  I've made a decision, the idea of buying a property and hoping it will grow  sort of worried me, but I suppose it's all about what you want to achieve in your investment. 

Does this development sound like a goer

Purchase $260k

Stamp Duty 11k

Sub division $20-$25k

Selling costs $10k

Holding costs $12k

Demolition $10-$15k

Building turnkey $320k

Total $647k

Approx $325k per dwelling, properties in this area and street of this quality are selling and sold from $375k are these kind of returns acceptable? to make this project viable? Or is it too tight around 15% Thanks

Thanks newby, your right even amongst the dodgy areas there should be  some nicer spots,