Many would say the house in Anvil, since it costs only 5,000, so that is the best value for money, but the best house and most expensive is the house in skingrad, rosethorn hall.
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You can't buy any in the isles
Each horse is different, so the best is either the unicorn which can't be a default horse, or the Shadowmere which can be a default horse. The unicorn is the strongest and the 2nd fastest. The Shadowmere is the fastest. The Best buyable horse in Oblivion is the White Hourses (Cheydinhal stable).
It's behind the abandoned house on the waterfront. You should be able to use your in-game map to find it.
There two "best" armor types in Shivering Isles. Perfect Amber is the best light armor, Perfect Madness is the best set of heavy armor.
You never become an actual god in Oblivion.