Hey Dom,

I think you’re on the right track with development, if done correctly. Personally, I’m a fan of dual occupancy where you divide the block for two dwellings – the key here is that they are not strata titled which means they can not be sold separately which is fine if you are looking for rental returns as it keeps the costs down (it’s a lot me expensive to subdivide a block). I’m doing a couple now and working on rental returns of about 7.3% (working on one that’s coming in at over 10%). That’s a lot lower than people are talking about on here but I’m also talking about large blocks in the middle of a major city.

The biggest thing to look out for is local zoning. I’d suggest to work in an area you know and get to know it even better. Start with the local councils to work out what’s allowed.

Drop me a line if you want ask anything

Peace.

Lee