Rental property tax tip #1 – Get your loan structure right
Be sure that you keep your rental property loan separate from your personal loans or home loans. So then it’s easy to prove what the loan was for, and if you want to pay off extra funds, you would normally choose to do this on personal loans or home loans.
Also try not to use savings towards the initial deposit of the property (unless you have no other personal or home loans), as you are best off putting these savings to pay down your home loan, then redrawing to pay the rental property deposit.
Then a percentage of this loan is related to the rental property. Ideally, you would try to split this joint loan between home/private portion versus rental property loan.
By Patrick Hoey