Is there any way I can access the extra property equity and deduct the full interest against rent?

Q.

I am working overseas and have rented out my apartment. As I have built up some equity in the apartment, I'd like to increase the mortgage amount and invest the extra funds in shares. If I take out a second loan to access the equity, the interest won't be deductible against rent income, and as a tax non-resident, also won't be deductible against dividend income. Is there any way I can access the extra apartment equity and deduct the full interest against rent or do you have any other suggestions on using the extra equity?

Make sure the loan is on an interest only basis and use the rent to buy shares. Once the shares build up you could borrow for more shares using a home equity loan. You should also talk to your accountant about the possibility of adding outgoings such as rates and maintenance to the loan amount which will make it grow and maximise your tax deductions.