different thoughts

Hi all,
One of the things about property is the many different ways to approach things. Every situation is different depending on time frame,cash flow negative /positive and so on. Below is a property we currently have and we would appreciate hearing what other peoole would see and do with this. It may be the opposite to what we would do because of a different situation,but other people's ideas may help us to look outside the square.
The property is in TAREE N.S.W. It has two street frontages and is 972 m2. It was purchased in July 2002 for 98K. It is 2 bed + Sleepout Fibro house and in very good condition with fresh paint and new carpet. Up close to one street currently rented for $130 p/w. It was bought subject to and has been approved for sub-division with the possibility of two houses (semi detached) on the rear block,facing thier own street. Sub Division will be approx $12,000 with the rear block worth around 45K undeveloped.
This property is a block and a half away from Taree Hospital (which has just had $90M spent on it) and three blocks from two major shopping centres(ie. K mart, woolworth etc).
It would be great to hear different people's ideas on this,not what you think we should do ,more what you would do yourself.


Without knowing all the details my senario would go along the lines of subdivide the block, build two 2 bed units on back block, while having plans drawn up for two on front block. Keep for at least a year for rent, or longer depending on yield etc. Then eventually sell one or two of the units when the fibro reaches its use by date and build other 2 units on that block (have assumed that you can strata title).
Of course as soon as I had more info about area,etc would probably change mind. Please don't take my view as advice as it's only worth what you paid for it!!