Hi Manoj01,

Above all, the key is going to be to look at the council regulations surrounding zoning, building and subdivision in the area where you intend to buy. You do not want to encounter a situation where you buy a house and then find you cannot subdivide it due to some regulations about minimum lot sizing, for example.

Secondly, you want to ensure that, after subdividing, the land-only component can still have a decent dwelling built on it under council building regulations; for example, there are often rules regarding how close to the fence-line one can build, so if the land is too small, then there may be heavy restrictions on the house that a buyer could build there, and that would reduce profitability when selling.

Hope that helps!