There is mention above of cash investments losing value due to inflation. The same thing happens to property, unless you have borrowed money owing, where you get some benefit of inflation devaluing the loan over time. But that is only useful if the place is positively geared if prices are stagnant.
Kincella stated that property always keeps up with inflation. It has spent periods of time with no price improvement for 10 years in the last 50. That can easily happen again as it has never been more expensive.
Just like when the price of fuel comes down I was thrilled to hear the news of the property prices falling. Here's to many more falls coming soon!
