Hi, We have lived in our existing PPOR for 7 years and worked hard to pay down the mortgage and save money. Over time the value of the property had risen and in 2015 we decided to upgrade to a bigger house. Below are some important events to consider. Please help me with my questions, point out any mistakes I have made and help me in the right direction to fix them... 1. Aug 2015 - Existing PPOR loan balance 260K, market value 630K and 140K savings in offset A/C. 2. Oct 2015 - Purchased a vacant land for 585K and borrowed 468K (80% LVR). To pay for the land we released equity of 100K which increased PPOR loan balance to 360K and paid for the stamp duty and difference from our savings. 3. Oct 2016 - Borrowing 505K for construction as investment loan and refinancing existing PPOR as investment interest only loan. According to broker the loans needs to be investment loans for better borrowing capacity and interest only option. However, we may choose to use newly constructed house as PPOR. Now my questions are as follows: 1. Should I park my savings in existing PPOR loan offset account or construction loan offset account during the construction stage? 2. If I change my existing PPOR to Investment after construction completion, on which loan balance can I claim interest? Will it be on 260K or 360K or whatever the new balance is after construction? 3. From a taxation viewpoint, is it even wise to convert this PPOR to Investment considering the claimable interest will be less than the rent I receive (approx $1900 per month)? Will I be better of selling this property and avoid CGT?