And I will say again - the formula for success in RE has and always will be location location location If you can swing a deal - especially a firesale and a desireable location or an up and coming neighborhood - you can make money on it. Lots of RE PROFESSIONALS have been doing this for years - BEFORE this last little run up.
Yes, the subprime market going away will have a big impact on RE - especially in places like CA - Yes, there are more vacancies than before - but in my view - that make the location element even more important.
I would NOT invest in new tract homes on the outskirts of town - even if they do include 30,000 in free upgrades.
Oh - and yes - My mutual fund investments have performed very well this past year. Not quite 27% but I have a few in the 20's
