Well, since the title of the thread is house traders, as a house trader, let me tell you that I'm not paying retail prices for property. If there is not at least $30k in net profit, or I'm not doubling my money on lower end property, I'm not buying it.
The high end of the market is pretty much in a free fall. First time home buyers in CA are still out looking, encouraged by really low interest rates. I can't imagine how bad the market would be if interest rates would be if the market were allowed to set rates. Think of all those loans resetting and all the currently qualified buyes who would not be qualified.
Inflation= OIL/AGI's as hedge. NOT HOUSING! Oy vey! We just had a huge run up in the bubble of HOMES without inflation, infact, there was little inflation other than idiots bidding up home values and Banks playing musical chairs! Sure, you can pick up some cheap property in places. It's not a bad idea if the price is right for a very long term "PLAY" and a ploy for capital preservation. BUT NOT AN INFLATION PLAY! Man, ET scares me. How do ET'ers make money? More than half the post I read amaze me.
Google wont let me live in their basement though, not to mention my stock broker will not give me 30 to 1 margin like FHA and the banks will. Scottrade will give me 2 to 1 margin, but they charge 7.75% in interest.
In 2000 QQQQ was trading at 109. 2 years later it was trading under 20. Thats close enough to zero. How many people have become millionaires from investing in real estate? Lots...more people become millionaires from real estate than from anything else. How many traders have become millionaires from trading. Not many.
Look at this catastrophic price collapse for a home. There are several in the same neighborhood with similar price collapses. From 1.25 million dollars at peak to 20,000 dollars last sale.
states are so bankrupt you my as well double or triple the property taxes when you are doing the math on which is cheaper, renting vs purchasing. the best assets you can buy right now are ones that aren't publicly listed- ie with the current state of affairs you should expect crazy taxes on all assets- hence the growing value of gold / finer arts that you don't have to record.