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Still though in 2008 it was 3.8% and it has been above 3% since 2005 with the exception of 2007 where it was 2.8.
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Yeah, because the economy was booming, energy costs were sky rocketing, and so were commodities. Inflation is typically 2-4% on average in developed countries.
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Trying to apply that logic to a single person or family though that only has 1 or maybe 2 properties doesn't really work.
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Yes and no. In the short to medium term yes, but in the long term even an individual property is a pretty safe investment. My dad has slowly bought commercial properties over the past 30 years, and figures that with the lease income and increase in value they return on average 8-12% a year consistently. He has a deep suspicion of the stock market and especially investment advisors because he's been burned in the past, so the vast majority of his investment money is tied up in half a dozen or so commercial properties, and he's done pretty well for himself.
That said, it's not something I'm personally interested in doing. The hassle of finding leasors, chasing down deadbeats, utilities, fixing problems with the buildings, and so on are a big turn off for me.
