I've owned my PPOR for about 10 years and it's got a great back yard for sub division. I understand you don't pay any CGT for capital gains on a PPOR. How can I best achieve maximum profits? If I sell as is, I'll get about double what I paid. If I construct an IP, I'll get hit with CGT if/when I sell it. Would a better strategy be to build the house at the back, sell the one at the front and move into the new house for a year or two, then sell that within a 6 year period, or until I find a new PPOR to buy? I've asked about financing IP sub division from offset funds before and received a very solid "no", but would this situation be suitable to fund from IP offset funds, because the new house will be my PPOR and if my theory is right, I won't get hit with CGT for either property, as well as claiming more tax deductions by paying a higher interest rate until I sell the houses? Your thoughts appreciated.