I am currently living in Argentina where inflation is running at about 25% PA and interest rates for personal borrowing are running at between 20% and 35% (fixed). In the UK, inflation is running at about 2.7% and interest rates for personal borrowing are about 4%. I have heard people say that although the interest rates are very high in Argentina, the inflation has an effect on the interest which makes them almost as good as the 4% rates in the uk. What I really want to know is if I'm any worse off than someone in the UK, for example. Here's my reasoning's - workings attached. Lets take a property worth 1 million Argentine pesos. In Argentina with inflation at 24%, the "value" of this property in 10 years would be 8.6 million pesos, if inflation continues at 24%. If I was to borrow 1 million pesos on a 30% fixed interest rate, payable over 10 years, the total repayments (capital + interest) would be 3.1 million pesos. In the UK, lets keep using pesos as a currency, at 2.7% inflation, the 1 million property will be worth 1.3 million pesos, and the cost of the loan at 4% interest, as per above, would be 1.2 million pesos. Is the Argentine scenario then not a better one (all things considering!) where I end up with a property worth 8.6 million, at a total cost of 3.1 million, compared to the UK, where I would end up with a property worth 1.3 million, compared to my 1.2 million investment? Leaving fluctuations in land value aside, which is often not only an economical consideration, what pit falls could I come across? Or is my perspective of this totally warped?