Knockdown old house to build units in Melbourne's North

[Brian1423]

I've been noticing all the small old houses on big blocks of land in Melbourne's North, specially in Reservoir.

I know it is a popular strategy to buy places like this:
http://www.realestate.com.au/property-house-vic-reservoir-115788959

And then get council approval to knock down the old house to build units. I was wondering if anyone has done basic analysis of this? I know a good unit in Resevoir can sell for $300,000+, but I am not sure how much it would cost to knock down a house and then build 3 units.

I am not in the building industry myself, but I do have family members who are and could help me get some good deals on some of the work.

 

[Nash13]

Have you thought about retaining the existing dwelling then subdividing/building two units at the rear? Looks to be plenty of room providing a common driveway can be established along the eastern boundary.

Sounds your family members would be a good resource to tap in order to get some ballpark figures on your likely demo/building cost. Sounds like you need a feasibility done to determine the total costs though