Hi Rawbaws, you said: "I'll only make this point - Making some profit from inflation is better than sitting on your hands."
I dont think I made my point clear enough. In an inflationary environment, house price appreciation will be less than inflation. Take the hypothetical inflation scenario: 2010 CPI: +10% 2010 house prices: +5%
You're house just lost 5% of its value in purchasing power terms. And thats all that counts, right? Im assuming you want to cash in in the future & buy the boat, have holidays etc. But the boat & holiday in this scenario just got more expensive by 5% when compared to your house asset.
