You make some interesting comments however let me clarify I am a pragmatist first and foremost - furthermore I am highly flexible in my outlook . I do not wish for hyperinflation but the Central Banks are now being forced to address recessionary pressures and inflation is running second fiddle. Economics is not a perfect science and assumptions made as to assets finding their level are just that - assumptions based on matters remaining in isolation which they do not.
Property in Australia is a protected species. Negative gearing legislation, fhos, rebates on stamp duty, et al see to that. Add to that we have a shortfall - kids moving home to mum and dad are hiccups that will unleash demand for homes later on. When you increase money supply you increase inflation - analogies to Zimbabwe don't cut any ice with me as that is a result of political and corrupt ideology. If we have hyperinflation - rates will have to rise but it will be a while yet before that happens and the next 5 years will see some interesting economic forces at work. Rates are going down and I dispute inflation is anywhere near under control. So here already we have an anomoly at work that defies a lot of economic claptrap.
You say buy gold -that is a bit of a joke as it should be through the roof and yet see how resilient the US dollar is. I do hold gold by the way as suggested by some property moguls.
Better to own your home outright in high inflationary times, cost of replacement climbs and I believe that those holding this asset, not too heavily indebted will ride quite a wave in years to come. Then we will have to be careful as the Central Bankers start the climb back up and they will not want to risk doing that too quickly as they risk this whole fiasco again. To put it mildly they are screwed and whilst the circumstances favour real estate in Aust I will benefit. If it changes I am out red rover - obviously with the exception of my principal place of residence. Purely and utterly opportunistic and my judgement will not be clouded by ideology or someone elses poor vision. That is not aimed at you as I have learnt to ignore others opinion if I believe it wrong and visionaries are usually out of step and I revell in that. Because a trillion flies eat you know what I will not.
