What are people's thoughts on buying a subdivided property from a general capital growth perspective? Houses on full blocks in this particular area of Melbourne have become relatively unaffordable as the suburb has become more desirable ($800,000+ for a run down house), but subdivided blocks remain at a good entry-level price at the moment (up to $600,000 for renovated or larger house). The existing blocks in this area are generally large, so a lot of subdivision has already taken place, mostly when the full blocks were more affordable to buy, but that is no longer the case. Cashed-up investors who can afford to buy the full blocks now are doing so with run-down houses to knock them down. The particular property I'm interested in is the original street-facing property, with a new unit at the rear. I am concerned about the capital growth potential of a subdivided property, but I can see that as the full blocks go higher in price and become much rarer, the subdivided properties are going to follow as the only way a large portion of buyers will be able to afford to buy in the suburb. Hope I've pained enough of a picture of the stage that this suburb is at. Any tips on how to pick a good subdivided property from a bad one are appreciated as well. Strategy is to buy and hold, renovate (and rely on capital growth) to increase equity for next purchase.