Hi all,
Les, on that inflation vs "real" return, many miss the point that your loans don't go up by inflation, just the value of the asset does.
So when you sell something 20 years later, you can pay off a lot of old loans with deflated dollars.
A period like the early 70's saw massive inflation, and interest rates lagged far behind, many people were able to pay off loans over a 3-4 year period, without selling anything.
bye
Les, on that inflation vs "real" return, many miss the point that your loans don't go up by inflation, just the value of the asset does.
So when you sell something 20 years later, you can pay off a lot of old loans with deflated dollars.
A period like the early 70's saw massive inflation, and interest rates lagged far behind, many people were able to pay off loans over a 3-4 year period, without selling anything.
bye