Have been listening to various economists who believe we are headed for a period of deflation, followed by high or hyper inflation.
I understand property is a good thing in times of high inflation (as the loaned amount reduces in relative value while rents go up).
What happens in deflation though? What position would you want to be in?
Property values drop?
Rents drop?
Loan amounts increase (in relative terms)?
Is leveraged property in general a very bad thing to own during deflation? Would things be OK if you had good cashflow?
I understand property is a good thing in times of high inflation (as the loaned amount reduces in relative value while rents go up).
What happens in deflation though? What position would you want to be in?
Property values drop?
Rents drop?
Loan amounts increase (in relative terms)?
Is leveraged property in general a very bad thing to own during deflation? Would things be OK if you had good cashflow?