My situation, In 2004 I purchased a 2 bed apartment (circa 1997) at Northgate QLD and lived in it for 5 years. In 2009 I purchased a house at Virginia and it has been my PPOR since that time. I rented out the apartment at Northgate and have been receiving a rental income on it since. Next week I am going to put the apartment up for sale, as the saturation of apartments around the Nundah area make me feel there isn't too much more capital gains to be made on the apartment any more. Our intention is to also move out of Brisbane, and in the next year or two we move out of our current PPOR at Virginia, and turn it into a rental. The site at Virginia is a split lot 810sqm, so I am keen to hang onto it for further capital gains and possible development opportunity later. My questions are a) Do you agree that it would be a smart move to get rid of the apartment now? b) I am getting a retrospective valuation done on the apartment for the date I turned it into a rental in 2009. I'm not 100% clear on the 6 year PPOR extension rule for CGT, though I assume because I started generated an income on it in 2009 my CGT should be calculated from the value of the property in 2009 compared to the sale price now? (then applying the discount rule) c) For the sale of the apartment, should I move the profit from the sale into the offset of my current PPOR, or should I leave it as cash as a deposit for my next PPOR. This would maximise the mortgage when it turns the existing PPOR into a rental? (ie should I invest the profit of sale into equity of my existing PPOR, if I intend to turn my existing PPOR into a rental?) Thanks......it's friday!!