First home, subdivision

Chasing some advice on my current situation and proposed investment idea. I am a first home buyer

I have been looking at properties that have sufficient space to subdivide, ie around 800-1000sqm around the inner Geelong area. I'm considering one property which I anticipate will go for around 450k. I have 110k equity, but assuming I pay a20% deposit plus stamp duty and other costs there won't be much left. My intent will be to do a cheap cosmetic face lift and rent the property for around 300 - 350 a week. I'll have a rental shortfall of around $100 per week for mortgage, rates etc. Long term I'd keep the front property and subdivide behind. There is 37m from the rear of the house to the back boundary.

Obviously I have other options to buy a place that will yield higher rent on a smaller block, but then I'll forgo the future opportunity to subdivide.

My queries are:
1) what are my subdivision options. The place I'm looking at is in a st with multiple other existing town house subdivisions and I've spoken to the council who couldn't foresee any issues subdividing. But once I buy this place, I'm not going to have much equity leftover. Could I consider subdividing and selling with plans? Or are you better to build on the subdivision to make it worthwhile? Raising 20-30k cash to subdivide and develop plans won't be an issue (after another 12 months of saving), but I can't see anyway I'd be able to afford to build. Colleagues have mentioned other options like setting up syndicates but that sounds a bit tricky/convoluted..

2) looking at the broader picture, am I being too aggressive here given I'm a first home buyer. Should I maybe consider a more conservative approach with a cheaper place (ie on a smaller block) that will yield a better rental return, obviously forgoing the opportunity to subdivide.

I've got the money there and I'm keen to buy, I'm just cautious of being a bit aggressive. Perhaps the subdivision is a better option down the track when I have more equity.

Any advice appreciated

Hi Steve welcome. I'm from Geelong but now live in Sydney. I buy my IP in Hamlyn heights 600odd sqm. Now I'm hunting my second in Melb. Anyway if it was me I'd still buy and subdivide later. A broker here will be able to give you advice where to go on loan structure (ie pay 20% or 5% and so on).

Good luck:)