Can you explain how high inflation is good for an investor? Sure your house goes up in value but so do the costs. Rent is worth less as the dollar is worth less.
the key point is that the debt deflates because it remains fixed. If you have a neutrally geared property (and to varying degrees if you are neg or pos geared) you are getting a free ride because your debt is deflating (by the rate of true inflation, not CPI)
I have pondered this topic a lot as a way of self criticing the value of property investing. I am a firm believer in property primarily because of my faith in debt deflaion, with growing yeild and cap values a bonus.
in arriving at this, I have had to work out who is footing the bill. Generally it's depositors of cash at the bank and the effects of fractional banking.