Don't tell them that you will be repaying the loan in 12 mths or get a 2nd tier lender or borrow bank with bills.

I'd recommend cougar or dyna but it depends upon what you are looking to achieve. Excel also has some useful tools (NPV, IRR) or the excel forums on the web (search for Norman Harker, the guru who created alot of the stuff in the current version of excel).

net return = Net rent/current market value, this is the only formula that you can use to compare 2 different properties as gross return is too variable (ie initial rent/purchase price, or current rent/cmv). The net return also allows you to compare other investments like shares, fixed interest etc as all costs have been factored into the return.

There'd be a bit of rail noise (trains stopping every 5 minutes, click clack or screach of train wheels etc) but you'd get used to that (depends whether the t/h backs onto the line or is further away from it too).

The price has already taken a hit because of its location, unless there is to be an increase of intensity of use of the line eg become a goods line or duplication, there would be no unknown effects. This property will always be 10-15% below the price of purchasing elsewhere in the same suburb however will not lag behind any price movements. (Just compare the last sale prices of these t/h with the median price of the suburb at the time compared with the present, although the stats may be skewed for other factors).

You'reright, your construction costs will be higher however your overheads will be lower than most developers as you don't have an office/staff/wages etc to support.

Looks like there may be a couple of damp issues with the property as well – you best treat this before you do any painting or tiling as it will only reoccur causing issues with the tenants. Looks like there may be some issues on the roof also causing the ceiling to be damaged by mould (slow roof leak).

Look to a floating floor in the lounge/kitchen, vinyl sheeting to the laundry, if the tiling is still OK in the bath, have them & the bath resprayed.

There seems to be insufficient room to put in a cornice over your windows.

There are plenty of kitchen appliance packages on the market but you should get a hood, cooktop & oven (or range & oven) for less than $1k. Solid hotplates are best for rentals.

Good luck, even taking this to the tribunal will see you out of pocket (agent as your rep, tribunal fees, lost time, vacant tenancy etc). Fair wear & tear is just that, it is fair for the tenant to have furniture and to use the property and the landlord cries tear(s) when their perfectly honed finishes show wear marks.

Moral of the story – if the place has been refurbished, get a minimum of 12 month lease (there are professional tenants out there who go from new house to new house as they like being the first in).

Lack of building trades & remoteness contribute significantly to the cost of construction in these areas so be prepared for blowouts in cost esp if you only have a 15% margin.

Capital growth is usually negligible so returns will be from rent so either go the developers profit or keep it as a rental.

Thx, now that we have a bit more info:

(still don't know if it is company owned or other but anyways), Yes you will be subject to CGT, you will also be liable for the GST on the construction which will also hammer your return. Your CGT will be calculated on your marginal rate of tax excluding the profit made on the development. Will you be using the margin scheme or paying gst on the whole of the project?

If you are already in the top tax bracket Robbo, why don't you ask you accountant about the best structuring for your situation then bounce it off the 'experts' on this forum?

BTW companies do not benefit from the CGT exemption/reduction unlike personally held assets (as per trustee's comments). I'd be considering spreading my risks interstate if the sole criteria is to reduce land tax.