Hi All, This may have been asked before but I haven't been able to locate the thread. We have bought a townhouse in Cairns specifically for future use as a rental property. It is our first property and is currently our PPOR. We did claim the first home owners grant and stamp duty exemption (Don't you love how the gov. claims brownie points for giving you some of your money back or relaxes a stupid fee?). We intend to travel around Aus. soon (in 6 months) and would like to make this property into an IP never to return. I am getting a funny feeling we have done this the wrong way (by living in it). Apparently the gov. doesn't take kindly to turning PPOR's into IP's? Also we are worried about paying CGT on increase of value while we were living in the property if and when we sell it down the track. Please help if anyone knows the go? Current facts: We have a large amount of $ we paid extra into the loan that can be redrawn. We bought the property in Feb '06. We will be living in our 4wd so don't need a PPOR. The property has risen in value by at least 15% - maybe 20%. We both have have good jobs and could easily get finance on another 2 IP's before we go on our trip but are worried about servicing the loans etc. but this could be done with $ redrawn from PPOR. Any input would be greatly appreciated.