We are entering our second Rural Res subdivision.
We buy a home and live in it, land 30,000 to 50,000 sq meters around $750,000.00
After the subdivision the home on 8000 sq meters is worth about $580,000.00 plus extra blocks sold 2-4 @ $300,000 ea.
Raw Land cost $175000.00
Our last one we created 3 extra lots, the Total development costs were $365,000.00
Cash Flow was about $100,000, with development approvals in place ready to go and blocks in a completed state within our boudries.
The expensive stuff is external to your boundries, Street widening, Power, council contributions, surveying.

We got one block under contract then we did the street widening council contributions etc. it took another 3-4 months and really only had the finance the majority of the costs for 3-10 weeks. As soon as we had title and everything completed the other blocks sold within 3 months.

I think the go is….timing of the market spend the big dollars when things are moving up.

Land sales $960,000.00 less $365,000 costs profit $595,000 less land costs.
The ATO gave us a tax ruling that 50% Capital gains tax was applicable being our home….they might change their mind on the 2nd one.
We started the process in 2011 completed it april 2014 due to a depressed property market, but that did not worry us as the holding costs were not applicable because its our home capital.