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Thanks Mr5o1,
So the way I see to proceed to be CGT exempt would be demo the front house and build a new one. Then subdivide and within 6 months sell the front whilst retaining the back block. I can then within 4 years build on the back block and use the back block as my PPOR. When building the first house the PPOR is the house on the full block as I have not done any subdivision. The dual PPOR only takes effect when I subdivide and as long as I am not constructing another building or owning both for a period of greater than 6 months I will be CGT exempt on both.
Sorry in advance if I have this wrong but does that seem correct? This is quite a confusing area.
So due to the fact we are demolishing and building that will impact our CGT rather than if we lived in the existing house subdivided the block and sold the front house within 6 months and then built on the back block and moved into that?
I guess it makes it more attractive to do up the front house within 6 months subdivide and sell it then build on the back block to get the dual CGT exemption.
If you demolished the front house and built new then subdivided and retained the back block I guess you would also have to pay CGT when you finally sold the house on the back block too.
I was hoping to live in one as my PPOR but was thinking that when I did come to sell it (quite some way down the track) that I would be subject to CGT on that property as well. I don't mind paying CGT on one (but hoping to minimise) but not to keen to pay on both. I was thinking of subbing and selling half the land to a friend for nil gain (although he would still be up for Stamp Duty) and build and keep the other half for myself whereupon I should have no CGT payable (but not sure if this is right?).
