Rawbaws, Accept your numbers, again, no argument. But Im saying there are better ways to invest your money than houses in an inflationary environment.
eg; Invest 500k in gold bullion. Gold does better than inflation, but to be conservative lets say it matches our hypothetical inflation number of 10% p.a.
In 5 years time the bullion will be worth 805k (at 10% a year increase) = profit of 305k less CG etc say 220k.
Boat that was 50k is now worth $73k (@ 10% per year inflation)
I have just got a boat for nothing and pocketed another $147k - caused by inflation.
