Restructuring loans for rental property
Question from Matt updated on 10th August 2015:
I have had a rental property for a few years prior to now owning a family home. My rental has had more mortgage principal paid off than my family home and therefore a lesser interest amount to claim back. Can I re-structure my bank loans to show that my rental has had less principal paid off and more interest to claim back? If not, my family home is being used as collateral for my rental so maybe this interest can be claimed back too?
Our expert Kris Pedersen responded:
You will need to discuss this with a property accountant to get a correct understanding on what you can do here. I believe if the investment property had effectively been negatively geared at some stage this will mean you will have had to lend it money which means you may be able to restructure some of your personal debt. But you will need to go through this with an accountant to see exactly what can be done.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz
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