GaryB Junior Member Joined: Aug 24, 2017 Messages: 5,888 Likes Received: 1,027 Jan 18, 2021 #21 Denial: I sent your post to friend. He wrote back that you don't understand what a hedge is and why real estate is a hedge. Using my friends numbers, here is an example. The idiot and you have $100,000.00 to spend in 1989 (base year). The idiot buys a car and a pickup truck for the $100k and you buy a property for the same amount. Based on the PPI (Purchasing Power Index) it would take $209,910.82 (109% inflation since 1989) to buy the same items now. In order to be a hedge against inflation, the 1989 purchase will be worth approximately $209,910 (perfect hedge) today. What is the probability that the idiots vehicles are worth $209k today? What is the probability that the land that you bought is worth $209k today? In the 20th century, there were only two years when land were not perfect hedges against inflation. In 1978 and 1997, overall home prices increased faster than the rate of inflation. Hope this info helps. sctrojan2006 likes this.