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We have no other option really. I've been told by the builder we hope to use that it would save us some money to build all at once, but from my understanding (we were not talking actual figures), the saving isn't huge. If we can manage things and borrow enough to build all four at once, we...

Okay... then spend as little as possible for such a short time. We have no income (other than rent) and we are hoping to get approval for four townhouses. The only way we can finance it is to borrow against property (some type of asset lend) to build the first two, get them rented and valued...

If I read correctly, you will be moving in, renovating it to suit yourself, with a view to possibly demolishing it down the track to develop the block? If so, I would rip up carpets, paint the walls and enjoy the space. It sounds like you have asbestos eaves (generally the case) but possibly...