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If you borrow $100k and buy 100k items for resale and the currency drops 95% o/night you only need to sell 5 thousand items in the new deflated money to be able to repay your lender. Hyper inflation does indeed benefit the borrower provided you are paying less than 2,000% o/n interest. (in this...

I probably understand inflation better than you do.

As it is with shares and net rent is about what can be achieved by an "income" share portfolio. And dividends increase in dollar value each year too. I really don't see the BIG difference between the asset classes some of you guys see. That is: The same principles of risk/reward should apply...

To achieve +ve cash flow in Syd you would need a massive deposit, possibly 50% (the locals will tell me) in which case you must ask yourself if you are getting sufficient return on your half mill considering the risks.

That's OK. But you must deduct the FV of your input costs which have already been spent, thus unavailable to you. Then you must reverse the process to find the PV of the ($68,783 - FV of costs). And for the life of me I still don't understand how you can ignore interest paid along the way. It...

Take your pick, I don't mind. You are even entitled to say I'm as thick as a brick. Again, I don't mind because your beliefs are of no concern to me. I just challenge this mantra of yours in the hope others with open minds may think about it. I believe it is a load of rubbish, and some...

I think you've covered the two possibilities. But LOGIC says I'm right. Never studied voodoo so you may yet have a case.

Oracle, I am a simple man who believes in simple logic. Why would someone lend you money knowing they are going to be short changed in the repayments? I know there is an anomaly with people buying US Fed notes at -ve interest rates but neither you nor I have the same status as the Fed.

I must have debated this with you half a dozen times BV. Inflation does NOT inflate away your mortgage. At least not in normal times. The interest you pay on your mortgage is "inflation + lender's profit". The more the inflation, the higher your mortgage. The lender always makes his profit...