1st time – need subdivision advice pls

Hi everyone,

I'm 24 and have been looking at properties to invest in for a solid 8 weeks. I've visited about 15 properties and have found an old brick 3bed, 2 bath, 2 car port on a 1,000sqm block for $230k 35km out of Melbourne. What has attracted me to this place is 1) it is in need of some cosmetic TLC where I can add value and 2) I can subdivide half the block and build a 15sqm unit. (This has been done on a few blocks in the area which is encouraging).

I've got the OK from the council to split the block and have obtained quotes from surveyors ranging from $6k – $20k for a subdivision. This is where the learning starts…where to next?

I believe (based on other places I've looked at in the area) that the property is about $20k overpriced for a single dwelling. However, after the reno on the existing house I'll end up getting the second slice of land for $20k.

I am eager to place an offer as after listening to Steve's webcast with Martin Ayles I am convinced that this property has a variety of options for improvement & growth.

My accountant has suggested buying it in my name to get the grant and reduced CGT on sale as my primary residence however I would like to put in a tenant upon singing as I am flat out with my career now and am in this for a combo of reno, subby and hold.

I need to let the agent know ASAP with my offer however am anxious about committing without knowing the associated costs in the project. Any advice greatly appreciated.

Thanks in advance and happy returns!