[quote=UCGal]I think you need to differentiate between flippers and people purchasing to rent them out.
Flippers buy, spend some money to theoretically raise the sales price, and sell – in a short time frame. They don’t plan to hold the house, their business model is get-in-and-get-out.
Landlords buy with a different criteria – they look at cash flow vs expenses.
What seems to be the underlying issue isn’t whether they are flippers or landlords – it’s that these houses are being bought by people other than you.
My only advice – keep saving. Keep looking for opportunity to purchase a good value. If you keep getting outbid – perhaps you can’t afford the house. Or perhaps the person who bought paid too much. Either way – consider it a dodged bullet… You don’t want to be in a house that stretches you too much. You don’t want to overpay.
Being resentful to people who see opportunity and take it isn’t going to change the system… just give you a headache or ulcer. Life’s too short to give yourself self induced stress.[/quote]
IMHO, speculation is fine when that speculation doesn’t adversely affect people who have no control over these markets, yet need the goods/services from these markets in order to survive.
The difference between acceptable speculation and unacceptable speculation depends on whether or not the speculation involves a want or a need. Want to buy a billion dollars worth of MSFT stock (either for the dividend or capital appreciation)? Great! Want to speculate on whether or not the Giants win? Super! Gold, copper, Intel stocks, corporate bonds, etc. are all open for speculation, and I couldn’t care less if people make or lose money there (as long as they don’t ask me to cover their losses)
Want to speculate on the price of water, clean air, oil, housing, food, or other basic necessities? I have a problem with that.
