You are correct, travel expenses and other buying costs are not tax deductable. Keep your receipts however, because if at anytime you sell these items get added to the cost base.
To ensure you have the potential to subdivide, you need to go to the council in the suburbs you intend to purchase and speak with the town planner(s) as to the requirements they have and the plans/vision they have for the area.
Making your offer subject to council approval is unlikely to allow you to secure a suburban "house on land" at present. You mention you wish to subdivide the land in the future.....how far into the future? No one will allow you to tie up a standard house for several months for you to get approval. You need to be informed up front of council requirements, so when you have one (or preferably two or three) you're keen on, go to council and get their view. Of course this will not be binding but they can give you an idea as to what may be achieved there now.
You need to become an expert in an area (one or two suburbs), hence my earlier advice about looking in your own back yard first. If you are still keen to proceed with a Melbourne purchase, do as much due diligence as you can online and with google earth and finding comparable sales. Scour the threads here on Werribee and Hoppers Crossing and learn as much as you can. Also to enhance development potential in the future, allow at least 300 sq m of land per dwelling/site. If for example you were keen on a two town house development, I would aim for at least 650 sq m. Also go for corners to enhance access. You will pay slightly more for a corner.
I have purchased interstate (both Gold Coast and in Sydney), however not sight unseen. Others may be able to share their tips for purchasing in this manner.
Hope this helps.
