Interesting opportunity in Beckenham. For sale an almost completed house on a large block. There is a demo house at the front and a new, almost complete build at the back. Asking price is $599,000. reiwa.com - 51 Dulwich Street, Beckenham I am running the numbers on the following scenario: subdivide into two green title blocks, demolish the front house, build a 4x2 and sell, complete the rear house and sell. Based on a sale earlier this year, I have priced the street front 4x2 at $540,000. I have budgeted $75k to subdivide, service, fence and clear the front block. I am estimating a build cost of $200k to build something similar to this: Sold Price for 28 A Lacey Street Beckenham WA 6107 I am guessing the rear might sell for $600,000, but it needs work. For a carport, landscaping, painting, floor coverings, compete the kitchen, shower, taps, I have allowed $50k. Assuming we bought this for full price, here are my guesses so far: Purchase price: $600,000 Stamp duty: $24,815 Registration of title transfer: $274 Registration of mortgage: $164 Estimated legal costs: $600 Total Purchase: $625,853 Front house: Clearing, servicing, fencing, subdivision: $75,000 Build: $200,000 Total Cost: $275,000 Back house: Complete the build, carport, landscaping: $50,000 Total costs $950,853 Sale of front house: $540,000 Sale of back house: $600,000 Total sale: $1,140,000 GST on selling: $114,000 Agent commission: $28,500 Settlement fee: $2,353 Selling costs: $144,853 Total costs: $1,095,706 Gross profit $44,294 Where have I gone wrong? If the place could be bought in the margin scheme and the places sold in the margin scheme, that would reduce the GST component payable but I'm not sure how much by. Apart from that, it seem unprofitable unless I have missed something.