The positive effect of inflation on property debt. As a home price rises over time, it lowers the loan-to-value of any mortgage debt, acting as a natural discount. As a result, the equity on the property increases, but the fixed-rate mortgage payments remain the same.
Benefits of earning rental income. If rent can be adjusted up while keeping the mortgage the same, this can create the opportunity for increased money in the bank.
Property values over time outpace inflation. Real estate can be a good hedge against inflation because property values over time tend to stay on a steady upward curve.
Benefits of investing in properties with a low rate-fixed mortgage. As inflation rises, mortgage amounts stay the same, yet they are being paid back in lower values when adjusted.