How true is this statement, don’t you wonder? I think some time back, I wrote that I am okay with home prices rising just 1 percent every year! At the same time, inflation can rise by 3 percent every year. Want to see this in number? How much do we spend every year?
Based on a typical RM5,000 salary, that’s RM60,000 per year and inflation of 3 percent means a reduction of the value of this RM60,000 by RM1,800. Meanwhile, a RM500,000 home rising at just 1 percent per year is RM5,000 yeah. This is why property is often mentioned as the best hedge against inflation.
