Subdivide or Sell PPOR ?
PPOR - $2.4M mortgage $1.15M. $370k in Offset.
Location - 10k from Brisbane CBD (NorthWest suburbs) on a hilltop 1500 sqm block, 25 year old 2 storey 5 BDR build with no pool but great views.. renovated kitchen last year, built a pantry etc.
IP - Townhouse in MEL in Inner North, settled just before 2026 May budget, so no capital growth in this market, but gross rental yield 4.3%, and decent depreciation for taxes, heavily mortgaged close to $1M on it
so no scope for further loans
Seeking advice: Once empty nest next year, should i demolish PPOR, subdivide and sell half land and build on other half - not sure how i can do this without more loan? or better to sell late next year and buy smaller and probably go mortgage free and save close to $80k p.a. PPOR mortgage payment.