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Generally yes its about putting on 3 instead of 2. The third one is often the profit maker

Gotcha no OSL for 2 (putting it in the brain bank)

Lots and lots of money to the council for open space levy, money for headworks (sewer, water and power), money for demolition, I think your build cost is a little light on but I'm not a Melb person and I'd allow more for contingency - around 10%