Illustrative sample — an example of what FlipPro produces, using the real numbers from a Penrith deal we broke down on the blog. No login required.
Full Analysis
720m² R2 lot · Penrith LGA, NSW
Asking $880,000 · 14.8m frontage · zoned R2 Low Density Residential
42
Deal score
The deal thesis
The obvious play here is subdivision — and the planning rules allow it. But the end-value comps don't support the build cost. At $880k it loses money. Walk away, or offer well below asking.
Scored against all 10 strategies
Every property is rated 0–100 on each investment play, so you instantly see what — if anything — it's best suited for.
- PassSubdivision34
Obvious play — but end-value comps don't support it at this price
- PassDevelopment Site41
Same comp ceiling caps any multi-dwelling build
- PassKnockdown Rebuild44
New-build comps top out ~$800k; land too dear
- PassMulti-Dwelling47
Yield works only at a much lower land cost
- PassStrata Title39
Single dwelling — nothing to strata yet
- Worth a LookFull Renovation52
Liveable uplift, but thin margin after costs
- PassCosmetic Flip49
Light reno possible; modest spread
- Worth a LookGranny Flat61
Secondary dwelling adds the strongest yield here
- Worth a LookBuy & Hold63
Land-bank in a pro-density LGA — patience play
- PassCommercial Yield18
Residential R2 — not applicable
The subdivision maths
Why the obvious play fails — run before you offer, not after.
| Purchase price (asking) | $880,000 |
| Subdivision — civil, services, survey, legal | $190,000 |
| Build — 2 new dwellings @ $440k | $880,000 |
| Holding cost (≈15 months) | $70,000 |
| Total in | $2,020,000 |
| Gross realisation — 2 new builds @ $760k | $1,520,000 |
| Net result (before selling costs & GST) | −$500,000 |
Maximum you should pay — for a viable subdivision
≈ $180,000
To hit a 15% margin against the current new-build comps, the land would need to cost about $180k — versus the $880k asking. This site can't support a profitable subdivision at any realistic price today. You win when you buy — and this one you don't.
Council & planning
- ✓ R2 zoning permits Torrens subdivision
- ✓ LEP minimum 450m² — lot is 720m²
- ✓ Frontage 14.8m vs 12.5m minimum
- ✓ 23 similar subdivisions approved in the LGA (12 mo)
- ○ No flood, bushfire or heritage overlay detected
Planning is permissive — it's the economics that fail.
Comparable sales
Six new-build 4-bed houses on recently-subdivided lots sold $720k–$800k in the last 12 months — two on the same street. The end value is real, and it's the ceiling that breaks the deal.
Red flags & due diligence
- ⚠ End-value comps cap profit below cost
- ⚠ 15-month timeline = real holding-cost drift
- ○ Confirm servicing/easements with a surveyor
- ○ Verify build cost with two fixed-price quotes
Run this on your next deal.
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Illustrative sample for demonstration only, based on a worked example from our blog. Not a live analysis of a current listing. FlipPro provides decision-support information only and does not constitute financial, legal or town-planning advice. Always conduct your own due diligence.