I think Altona is a great prospect for this sort of thing but make sure there is money in the deal for you. Do your research on what properties with permits are selling for, then identify properties that are suitable for getting permits and spreadsheet how much you think you will really make. It can be tight on making profit if you don't buy well.

Go and talk to your local council about properties and identify what the council requirements are for you to be able to apply for plans and permits. You need to learn about block sizes, requirements for side entry, open space etc.

Also look at your holding costs and if it takes you a year what does that cost you. Make sure you buy a place that is liveable enough to have a tenant in there, not one that you can't find a tenant for and you are paying all of the out of pocket costs yourself.

You probably also want to hold the property for 12 months so even if you got permits inside 12 months (doesn't happen often in Melbourne) you were over the 12 month mark so only pay CGT on half of the profit you make.

After stamp duty, council costs and selling agent fees it is hard to turn a profit. I haven't looked around Altona for a while but I've noticed in areas in Melbourne I have been looking that it is a lot easier to find sites with plans and permits than it was say 4 years ago when the market was hot. BUT, if you do this and the market turns as you are about to sell you will make yourself a nice profit to put towards your next deal. It's a great way to start out but if you aren't going to make any money you will need to be prepared to hold onto the site or actually do the build yourself.

Good luck with it all and have fun.