if you are also sayign rent pays off the interest and costs ie your interest only loan. then you agree with my coment that housing is just a savings plan.
also, inflation on debt does not shrink it, it grows it. interest rates go up when inflation goes up.
a bank will not lend you money below inflation because it lose's value, it will keep ahead of it and make a profit.
How does inflation "grow your debt"? You have lost me now BG. The debt figure stays the same. You pay interest on that same debt amount. Your rental income increases.
You will be paying higher interest during higher inflationary periods, of course. But you are still only paying interest on the same dollar value ($400k in our e.g.)for the 15 years.
Meanwhile, your rent is growing, if nothing else, just in line with inflation. At some stage the rental income will far exceed the interest repayments even at the highs.
