Tuesday, March 07, 2006

Bad Bubble Timing?

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UPDATED: The Early Show is all over real estate this week, promoting the book "The Automatic Millionaire Homeowner: A Powerful Plan to Finish Rich in Real Estate," by David Bach. The only trouble is, it's about how to MAKE money buying real estate. Isn't this a bit like promoting the sale of winter coats in July? Isn't now the time to feature a writer focusing on how not to LOSE money on the real estate you already bought?

During the screen captures above, author Bach was dispelling his house buying myths, including the myth that it's cheaper to rent. Of course, he conceded he's talking long term and said no more. You just can't expect anyone trying to sell books on home buying to tell people that now may not be the best, or safest time to buy a house. You have to feel for the guy. The publication process is so slow he probably wrote this thing more than a year ago, when it still seemed to some that the sky was the limit:
Bach's key message is that you simply cannot get rich by renting. "It's so hard to share that with people who are renting, but it's the truth," he told co-anchor Rene Syler "The average renter in America today is poor. They're worth less than $5,000. The average homeowner is worth over $172,000. So, what we're seeing in this country is a real separation between the rich and poor. In order to have wealth in America, you have to own a home."
As for the housing bubble:
With recent reports about a slump in the housing market, lots of Americans are on the fence about whether to buy or rent right now. But Bach points out that "real estate is not national. It is local. The only real estate that matters is the market that you're in, the street that you live on, the building that you own."
Um, Kay. Bach is back tomorrow "to talk about ways to protect your home purchase, in the event of a real estate slowdown," so stay tuned.

— The Boy in the Big Housing Bubble