I'll do my sums for you again
500k interest only loan, cash flow neutral, inflation @ 10% housing increasing @ 5%. I want to buy a boat that costs 50k TODAY.
In 5 years time my house will be worth 638k (at 5% a year increase) = profit of 138k less CG etc say 100k
Boat that was 50k is now worth $73k (@ 10% per year inflation)
I have just got a boat for nothing – caused by inflation.
