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In this podcast you stated that equity in properties is constantly eroded (may not be exact words) by inflation. I dont believe thats true. Inflation is actually a key part of what creates equity. Mortgage paydown, inflation, and demand growth are the key components to equity creation. Property and other hard assets are hedges against inflation mainly because they hold stable in value as currency devalues. So I actually see inflation as my friend. As the value of the dollar is eroded by inflation, my houses appreciate, the dollars Ive borrowed decrease in value, and my equity position goes up. I fully agree, though, that we need to harvest the equity periodically to put it to productive use and to keep the multiplier effect maximized.

I love your podcasts and I particularly enjoyed this one. It gave me some ideas for maximizing my long-term profits.

Thanks!
Ben

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