2million - My Journey to Financial Freedom

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Friday, February 17, 2006

Book Review: The Automatic Millionaire Homeowner

Since I am actively searching for a home at the moment I was eager to jump into this book. I had never read the bestseller "The Automatic Millionaire" by the same author, but I am famaliar with the principals and was eager to see what insight the author had for the real estate world.

I read this book in a single evening. After reading the entire book I finished disappointed. Since I am activing looking for my next home I had hoped this book would serve as my inspiration for pressing ahead and making a commitment. Needless to say I don't think it came close.

This book is written for an audience who has never bought a home. It offers muted inspiration for getting out of the renting lifestyle and offers little real insight for anyone who has any common sense when it comes to real estate.

I do take contention with a portion of the book the author used as a guide to how much one could afford. The author used some common rules of thumb provided by the FHA that a family could spend 29% of their gross income on housing costs and up to 41% of their gross income for all debts (so if you had no debts you could spend 41% of your gross income on housing costs) and discussed them as a "floor" and "ceiling" when it comes to the affordability of homeownership. I am shocked that the author would suggest such an idea as I wouldn't consider it a wise suggestion at least in the area that I live in (I suspect it may make more sense in CA and NY where the author has lived).

Who Should Read This?
Renters who want to know about how home ownership can help them create wealth; book is more applicable to high value real estate areas such as CA and NY.

Who Shouldn't Bother Reading It?
If you are a homeowner and have a basic understanding of real estate topics, this isn't worth your time.

Inpiration:
For the Financially Savvy:
Expert Insight:
Real Life Experiences:

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