If one were paying all cash, they would have an 8% return plus tax benefits with some inflation protection via rent increases, but at the end of 20 years they would not get the principal back, so it's not truly an 8% return.

Now that said, those properties are selling for slightly less than they did 20 years ago and rent growth is south of the inflation rate, the population of the county they are located in has declined about 3% over the last 20 years.

How will inflation come to affect interest rates and vice versa.Local/Regional Banks - CRE loans under 2MM Typically fixed for 3 or 5 years.

Inflated sales price, large down payment, hope you default on a couple of years, rinse and repeat.

Most markets are stabilized with moderate rent growth annually to keep pace with inflation.

The only problem I see is that unlike land lording, the payments one collects will eventually run out when the loan matures, and the payments do not keep up with inflation!

As far as taxes and insurance, I'm basically going off his numbers (plus increasing by 3% for inflation since his numbers are a year old).  

So the classical personal Mortgage is out of option for me.I was thinking to create an Ltd. in UK, Buy a property 100% with this Ltd. so that Ltd. would have a fix income and real value so the lender is save.Would that work in general, if I would try that in the US with an LLC and stay in the US.to Ukraine.The current mortgage rates for UAH (their currency) are at 20.50%, inflation is at around 10%.

I see RE as inflation hedge. 

. :)Other than that, just wanted comment that I don't think artificially inflating the population via immigration or the homeless, will rejuvenate anything.