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Hmmm!..same subject, different article, with an Australian twist. I must say I'm suprised to see such in the msm considering where much of their revenue derives. http://www.news.com.au/money/property/house-prices-out-of-whack-set-for-slump/story-e6frfmd0-1225872499475

Well, I'm still having problems with the stratagy. In my experience, inflation in a business is a no sum game, what you gain one way you lose in higher interest rates and more expensive essentials. (beer)

So, Zimbabwe has something to teach us then!

You will have to excuse me, I'm still trying to get my head round this one, but in what way exactly would you not generally be better off without inflation. Perhaps it is because I come from an age and environment where the properties I bought were rented out for a profit, and hence run as a...

I'm interested to know is by the above you regard inflation as an important aspect of your strategy, or just an inevitable aspect. I've never regarded inflation as a freind to anyone in general, as it tends to erode all wealth, and occasionally, as in the case in the mid seventies, when I was...

Ah, gotcha I think, so not real terms, but nominal terms, property as an inflation hedge.

I presume you mean that the cost to build the same house (not including land), would be more now in real terms as against what it cost to build in 2001?

Still not sure how much of a difference there is if you buy a house for 600k, and it is revalued at 800k a couple of years later. I must admit, the amount of money poured into housing is generally ignored, particularly when referencing increasing house prices as reported in the media. It...

Well if you swap the term 'company' for for population in the above, and relate it to domestic housing, isn't this exactly what we have been doing in Sydney for the past thirty years? creating equity out of percieved profits, to generate yet more leverage to draw on. Main difference seems to be...

Absolutely spot on!!!, but then no one really wants to compare and contrast to a country that doesn't appreciate how the property market works, (onward and upward forever). Try 55% down since 1990 on average, and 76% down in Tokyo, and this from a country with high pop density, and bugger all...