It is not the only place in the country at that pricepoint.  Take a look at Norlane VIC.

There are properties with high yields, sometimes they come with high risk (eg property in towns that rely on one company or industry for employment…. so if that company moves out, your demand goes down and you struggle to find tenants).

It doesn't take long to get a property to the "break even" point where costs equal rent.  So you pitch in some extra cash for a little while and then you no longer have to.

You sound like you're on the ball with numbers, so those stats in the back of API magazine will be your new best friend.  I like to look for areas that have a good balance between capital growth over 10 years, rental yield, and low vacancy rates.

Oh wow.  There goes my dreams of owning a big chunk of land then!

Have a chat to your solicitor about it.  They have probably dealt with such situations before and they'll tell you how they'd handle it.

I'll state the obvious – you need a UK pounds account for the money to land in (eg a UK bank account).  Easiest way to get one if you don't have one already is to do it through HSBC bank.  Otherwise, change your address with your Aussie bank and ask them to send you a statement to the UK.  Then use that to help with ID for opening a UK bank account.

Have you thought about gathering evidence (ie records of sales of similar properties in the area recently) and handing that over to the valuer to assist him in his job?

As the boys are pointing out, might be tough till  you clear the debt.  In the meantime, perhaps start shovelling money into a SMSF (Self Managed Super Fund) and use it in a year or two to buy property? (ie the Super Fund buys the property)  Benefits are of course money going into it is only taxed at 15%

One option is to offer to buy it subject to the relevant council planning permissions… but on the contract, consider putting your name OR NOMINEE.  That way you never pay stamp duty.  You just handball it on to your buyer.

You probably want to keep  this tenant in the house as long as possible, yes?  Keep the income flowing while you build the new house?  If so, is there any reason why you can't explain to her what will be happening, and see what she says?  If she complains about losing the backyard, maybe knock $10 or $20 a week off the rent…

When it comes time to sell the property, it will be more attractive to an investor if a tenant is already in place…