Is it wrong to want to pay out the loan of the investment property in 10-20 years and use the rent as income and therefore reduce my hours at work?

Q.

I am 33, single working full time and earning $65,000. I own my own apartment outright worth $420,000 and have shares worth $85,000. I salary sacrifice $300 a fortnight into super with a total of $120,000. I have just purchased an investment property worth $240,000 with a loan of $180,000. It is a P&I loan at 6.85% for 12 months. I use the rent and I contribute $400 a month for the repayments. I also contribute an extra $1000 a month. Should I continue this to reduce the loan or should I put the $1000 a month in a savings account, or in a managed fund and contribute on a monthly basis or save the money and buy more shares. Is it wrong to want to pay out the loan of the investment property in 10-20 years and use the rent as income and therefore reduce my hours at work?

Congratulations on what you've achieved to date. I believe you should keep the investment loan on an interest only basis so you do not lose your tax benefits as years pass. At the same time, you could invest surplus money in share based investments. This will give you diversification and it will also mean you will have more money working for you.