I'd hold a different view .
It depends on the situation .
If some thing has subdivision potential , then you are likely to be paying a premium for it , so the rental return is likely to be less , so you will either be able to buy less , or will need to put more money in to hold it . When we're buying standard IP's I don't worry about subdivision potential .mwe're not buying those locally and I wouldn't think about doing a long distant subdivision .
We have done two subdivisions on the north shore in Sydney on PPOR's , but neither were advertised as subdivision potential , and neither complied with the council guidelines ......
so we had to work around the edges of the system . Very good return but you needed to do what you were doing . We stumbled on the first one , but sought the second out . Took about six months of looking at every property that came on the market in our local area to find the second .
Cliff