Experiences with buying land in new development and building

I'm considering buying land in south west Sydney and building a house on it. Has anybody done this and had a good or bad experience they'd like to share. Any tips of what to look out for? I'm an experienced property investor in existing properties but have never bought land and built. I'm considering it due to an opportunity that's come our way that I think is a great way to have an investment property in Sydney. I understand the cost for land and build will be circa $630K, rental approx. $550-$600pw. A friend has recently done it in the same area and valuation on completed house after 6mths is $750K so it seems like a no brainer to me. However the mantra 'sounds too good to be true' is ringing in my ears. What am I missing? or what do I need to investigate further

Thanks

 

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