Inflation

[gouchobob]

What will happen to the real estate prices when this happens?

Hard to say, may not change that much depending on the severity of the situation. In the last crisis rents decreased dramatically initially but then recovered as the economy improved. However this time I don't think there will be a commodity boom which will save the day as happened in 2002. As a result the next crisis could be quite protracted. Even if prices don't fall if they stay stagnant for many years its still a real decline.

 

[gouchobob]

Any thoughts on the implications of inflation for the tourist/temporary rental market? On the one hand, could drive prices up, but on the other hand, could push tourists away (thus leading to stable or even dropping prices in this very over-priced sector). What have you all seen?

in the last crisis rents dropped. Logic would dictate that the more expensive it gets the less attractive it is as a tourist destination. One of the main reasons for the big jump in tourism after the last crisis is that Argentina was suddenly cheap, had been expensive(relatively before).