Getting your investment goals right for the next decade is one of the most critical things you can do.

A question about where you want to be in 2030 and beyond might seem strange at this point in time.

On the other hand, it is the perfect time to make wealth-creation plans that you hope to accomplish in the next decade from a psychological standpoint.

It is true that if you are an experienced investor or an investor who is relatively new to investing, your goal-setting will differ greatly.

Taking a closer look at each of these scenarios, let’s see what the best strategy would be for each of these types of investors.

A well-established investor

In the case of investors who already own portfolios, this is the time to begin thinking about how you will be able to consolidate their debt over the next decade and how you will handle it.

It is often the case that investors are too busy buying properties in order to have time to pay down the loans at some point in the future, they may conveniently forget that they will need to do so at some point in time.

Ideally, that point should take place right now if you are in your 40s or older and you are ready to make a change.

In order to achieve your financial goals, it would be a good idea to review all of your loans in the current low interest rate environment and if necessary, refinance them to the most suitable loan products that will allow you to achieve your goals.

Consequently, you might consider it a bit silly for anyone – young or old – not to make the most of historically low interest rates by repaying their loans principal and interest.

However, this requires a change in the traditional investor mindset that a home loan should be paid off before an investment property is purchased.

Historically, this mindset has been based upon the fact that owner-occupier loans are not tax deductible, which is a paradigm that should be phased out in the coming years!

If, however, you reduce debt on your investment loans, you will be able to generate more cash flow, which can be used for lifestyle purposes such as moving to part-time employment earlier than you had anticipated.

At some point, you may also be able to use these funds to pay down your mortgage.

It may also be worthwhile to review all of their expenses, including insurance premiums, in order to reduce your expenditures.

As a result of the additional cash flow, you may be able to pay down your portfolio more rapidly as well.

Investors new to the industry

The era of buying multiple properties each year has come to an end as we begin a brand-new decade.

In the next decade, lending is likely to remain relatively conservative as compared to previous decades.

An investor should rather establish achievable goals over the next decade by purchasing three or four investment properties.

In order to establish the foundation of your investment portfolio, you may want to consider purchasing properties in the middle-rings of our capital cities, but in particular in Sydney and Melbourne over the next year or two.

A stable marketplace that historically has superior cash flow, Brisbane is another worthwhile location that may not grow in value as quickly as Sydney or Melbourne.

In addition, it is important not to ignore the value propositions in Perth and Adelaide.

If you want to boost your cash flow even further, you may consider undertaking small developments or investing in a commercial property.

It is usually best to accumulate this size of portfolio within the first five years of investing.

So, the remaining half of the decade could be used to consolidate debt and implement strategies, such as renovations or small developments, to generate additional cash flow and capital growth.

Idle assets

Traditionally, people would take real pride in promoting the properties they owned, without admitting they had probably purchased them without much thought.

Today, it is more important – and ultimately more profitable – to build a portfolio of fewer properties, but ones that have been strategically selected for capital growth and cash flow potential, in accordance with your financial goals.

There is a need to be realistic with your wealth creation goals during this decade, while acknowledging that any debt you incur must be repaid eventually.

When the difference between interest only and principal and interest repayments isn’t significant, it is essential to take advantage of the current lending environment by choosing principal and interest repayments.

Offsetting your loans with extra funds can also reduce your interest payments and make the funds available for other investments later on.

The next two to three years will provide many investment opportunities, as well.

People who have switched from interest-only to principal-and-interest payments find it difficult to manage their mortgages.

The best properties will be available to established and new investors who began this decade with goals for the future.