David Bach on the CBS Early Show

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By JLP | March 7, 2006

I caught David Bach on The Early Show talking about real estate. His latest book, The Automatic Millionaire Homeowner, is officially out today. He talked about how renters will NEVER become wealthy. For the most part, I agree with that. He also said that the real estate bubble that everyone is talking about is not a national problem but a local problem.

I have to say that Bach is a lot more common sense than I thought he was. I guess I dismissed him because he was a best-selling author.

Topics: Books, Housing Market |

Comments to “David Bach on the CBS Early Show”

Brian Says:
March 7th, 2006 at 11:09 am

I like David’s books, but I think this one was probably released a little too late at this
stage of the game and will most likely get lost in the shuffle with all the other real estate
investment books out there.

FMF Says:
March 7th, 2006 at 12:43 pm

Yep, he is pretty much a common sense guy. I like him!

RS Says:
March 7th, 2006 at 1:32 pm

I like Back a lot, even if I think that some of his stuff is fairly basic.

I am not so sure that agree that renters cannot become wealthy anymore. I am starting to become convinced that may not be true. I actually put up a new post the other day discussing it: More Rent or Buy

I am now on my second house, so I guess I am obviously not totally convinced about this, but I think that there are way too many factors to say that buying is always better than renting.

-RS

LAMoneyGuy Says:
March 7th, 2006 at 4:14 pm

I talked about David Bach’s recent crusade for the housing industry recently on my blog. I have not read his most recent book, however, based on his YahooFinance articles, I am disappointed by a financial writer who I thought pretty highly of until recently.

He makes some leaps of logic to make his point, which may be true more often than not, but may encourage excessive risk taking in order to obtain real estate. He mixes up causation and correlation. For example, to say that renters will NEVER be wealthy is simply wrong. I have worked with people who have been renting the same place for years, and due to rent control, keep their cost of housing far lower than buying. Also, they are good savers. Homeownership or not, that is the key. Bach seems to agree with that in his first four or five books, but makes a dramatic change in this latest.

Here is an example of David’s misleading logic. While it is true that few wealthy Amerians are not homeowners, it is not true that all homeowners are wealthy. He makes howeownership sound as though it’s the ticket to wealth. Not for everyone.

Also, Bach states in the Yahoo article that “it’s never too late to catch the real estate wave.” His emphasis. I’m glad he wasn’t giving investing advice in early 2000.

Michael Says:
March 7th, 2006 at 5:30 pm

He lost any respect he might have had from me the minute he wrote that “budgeting doesn’t work.”

And it’s been all downhill from there.

Free Money Finance Says:
March 10th, 2006 at 5:47 am

Star Money Articles for the Week of March 6

Here are interesting posts this week from the MoneyBlogNetwork members and beyond: Five Cent Nickel highlights ten new money scams. Blueprint for Financial Prosperity spotlights Mapgirl’s Fiscal Challenge. Consumerism Commentary thinks the future is …

Free Money Finance Says:
March 20th, 2006 at 7:15 am

David Bach Day at Free Money Finance, Interview Part 1

Well, now that we’re off to a great start to David Bach Day at Free Money Finance, I wanted to keep up the momentum by posting a three-part interview I had with David. The interview was conducted via email, though

Cash Says:
December 3rd, 2008 at 1:31 am

As a hindsight I have to say that you really must think differently by now. I just cannot believe people swallowed everything he and the real estate “gurus” said.

You said that Bach has a lot of common sense. Here’s common sense to you: if a big percentage of Americans bought their first house with no money down that should already be an alarm signal for everyone. Shouldn’t you exit the market when totally broke people with credit card debt start buying and flipping real estate.

There’s no such thing as free lunch. Now. Tomorrow. Ever. Let’s try to remember it the next time, ok?

Greetings,

A man who rents.

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David Bach on the CBS Early Show