What to look for when buying a knock down rebuild site costs:
The construction of two double storey homes around 25 square each.
The cost of the two homes would be around $650 to $700k including subdivision, surveying, design, demolition, planning, engineering, soil testing and all fees from start to finish.
Some areas you should be looking at are Doncaster, Blackburn, Vermont, Donvale, Ringwood, Reservoir is also worth a look.
Size of land would need to be minimum 750m/2 plus.
Don't buy anything with a slope it will cost extra in build costs.
Don't buy anything with power lines out the front.
Corner lots are good because of a dual entrance saving space with driveways.
Look for other developments in that area because they can be used as precedents with any objections.
Heavy treed lots can be of major concern with the council likely not to allow removal of the trees.
In the years to come, train station and other public transport options will be a major advantage.
Click link below for further information about Knock down and Rebuild
http://www.berstanhomes.com.au/knock_down_rebuild_your_dream.html
Happy buying.