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Also what council? And what is required to get the r30 density bonus? You may find existing house has to be demolished or upgraded visually.

This is exactly what i am doing. With a 261m2 block no problems. The thing is you may need a set back ie of 1m from the existing house to new boundary which would make your lot smaller. There is also the 5% variation you could apply for. I would be making my offer subject to a survey...