IMO if you have the money then by all means you should do the research and buy condos/houses. The problem with these investment are the money is locked for awhile. Of course there is risk involved in real estate. Why do you think FIVE is not a 'smart buy'? We are getting at rate lower than completive in the area/reliable builder/great amenities /unique design. I don't see the logic in your argument for buying to live and buying to invest. If you are guaranteed to be able to rent the condo then they are both the same. Note: I can sell the unit right now for +$25K easily which is approximately +$50psf. If you are predicting price would dip to $400psf good luck!In that case, we all should go out and buy because house/condos always rise in the long run.
The "smart money" buys low (or close to the mean) and sells high (outskirts of trend line close to bubble territory) while the heard buys at the top of the market (bubble territory)
If your buying a home to live in and don't plan on moving for awhile then by all means buy now.( Even if prices drop and your moving, the place ur moving to would also have declined so it's kind of a wash). If your buying on speculation that your $500-$800/sq.ft condo will worth $700-$1000/sq.ft in 3 yrs good luck.