I have a question regarding using my current PPOR as a rental property but claiming it as a PPOR. Scenario: Property A: Lived for 5 years from 2006- 2011. Rent it for next 5 years 2011-2016 and sell the property in 2016. Declare Property A as the PPOR for the complete term and Pay no CGT. Property B: I will Purchase Property B in 2011. I move in to Property B but do not nominate it as PPOR till 2016 (Property A remains the PPOR). If I choose to sell in 10 years time, I will be liable for CGT for the first 5 years. My Questions are: 1. Since Property B is not the PPOR can it be claimed as an IP? i.e. Can I claim the interest payments and maintenance costs for Property B till it is not PPOR. 2. No deductions will apply to income from property A (rented from 2006 – 2011)? i.e. will it be fully taxable? The reason I am contemplating the above is because I only owe 60K on Property A which is valued at 450-500k. What would be the most tax effective way of buying a new property to live in with an existing property with a minimal mortgage? I have 2 years before I must move into a bigger home. We are a DINK Couple at the moment but that will change in 2 years time. If I sell the current PPOR, and buy a separate investment in addition to a new PPOR, the total cost including selling and buying costs will be 50K aprox. which seems pointless. I have also read somewhere that if I sell my property which is in my name only, to my spouse and she has to take out a loan to pay me then we wont be charged any stamp duty and she can then rent that property and claim the interest on the amount borrowed. http://www.austlii.edu.au/au/legis/vic/consol_act/da200093/s43.html If this is true then what are the other costs involved in the transaction besides stamp duty? Thanks in Advance!!