A borrower explains how inflation erodes debt while inflating asset values. Post-lockdown inflation hit 30%, which boosted his property portfolio while shrinking what he owes the bank. Borrow enough and the bank has the problem, not you.
I can literally use the banks to get rich how they use us to get rich. I remember a mentor of me saying, Rob, if you borrow a million from the bank, you have a problem. If you borrow 100 million from the bank, they have the problem. Inflation's been nearly 30% since lockdown. That's about how much my property portfolio has gone up, because property beats inflation. Inflation usually pushes it up. Also, if the value of money's gone down 30%, so is the value of debt. And people say, oh, it's not fair that the rich get richer. It's because we own assets.
