House Poor: Pumped Up Prices, Rising Rates, and Mortgages on Steroids: How to Survive the Coming Housing Crisis

by June Fletcher

Skyrocketing home values, cheap money, and enticing home equity offers in recent years ... millions of us took on bigger mortgages, bigger houses, and bigger debt. But disturbing signs point to the end of the housing bubble:

Home sales and starts are at all-time record highs;In some markets, prices have ballooned by over 100% in the past few years;Interest rates are rising, while consumer debt stands at a record 110% of disposable income;In...

• Format: Hardcover
• Language: English
• ISBN: 0060873221
• ISBN13: 9780060873226
• Release Date: November 2005
• Publisher: Harper Business
• Length: 224 Pages
• Weight: 1.00 lbs.
• Dimensions: 0.8" x 6.0" x 9.0"

Customer Reviews

Balanced Look at the Housing Market, With Helpful Advice

This book is not a full-blown economic analysis of the housing bubble. If you are looking for something like that, read "Irrational Exuberance," by Robert Shiller, or "Sell Now!," by John Talbott. Nor is this book a "buy now or you'll forever be priced out of the market" epistle. For that, see the National Association of Realtors and their spokesmen. This book is a fair, balanced look at the housing situation today. It discusses the bubble, all right, but the book's main purpose is to provide advice to average Joes about housing issues. The first chapter is entitled "To Buy or Not to Buy, That is the Question." Fletcher goes through the cases for buying, renting, buying to rent, and renting to own, pointing out the risks in each. In the second chapter, Fletcher explains the myriad types of financing out there -- many of which I'd never heard of -- and explains what to watch out for if you do decide to buy. Subsequent chapters are devoted to when and whether to improve your home (and what to improve), flipping, foreclosures, and selling to international investors or buying property outside the United States. Finally, someone has clearly explained the "1031 exchange," the Housing Affordability Index, and whether those granite countertops will pay for themselves. Fletcher writes from experience: she is the author of a Wall Street Journal column that gives practical advice to those in or who are contemplating joining the real estate market. Professional housing investors/flippers may not learn anything new here, but for the rest of us, homeowner or not, this book provides solid information and advice.

An Honest Book about the Volatile Real Estate Market

House Poor identifies the key issues consumers need to know to survive the current volatile housing market. The style is brisk and understandable, and the information is focused and useful. Unlike books that try to entice readers with promises of getting rich quick by investing in real estate, House Poor gives suggestions about how to invest prudently and warns readers about the dangers of becoming overextended. When activity in many housing markets begins to decline from its current unsustainable level, many people will wish they had read the advice in Fletcher's book.

Real Estate for Real People

Finally, someone cuts through all the get-rich-quick schemes and rejects the gloom-and-doom naysayers and looks at real estate with a little realism and common sense. Doing well in real estate is not just about "location, location, location" it's also about the state of the economy and timing and keeping an eye on the market, as Fletcher points out. It's a cycle and this book tells you how to figure out where you are in it so that you don't buy too high or sell too low. This is a very helpful, well-written and accessible book with some some good, solid analysis and sound advice. Bubbles may come and bubbles may go, but House Poor will be here for the long run.

Practical Advice for Changing Times

I read "House Poor" and thought that here, finally, was the first book in a long time which offered practical advice for real estate buyers and sellers. This book does not purport to create millionaires overnight, but it does suggest a number of sensible strategies that can improve the odds of getting a good deal whether the local market moves up, down or stays fairly level. Also, the book is clearly written. There's no jargon, the chapters are in a logical order and the book is filled with references and real-life examples. I liked "House Poor" and I suspect most readers will like it as well.

A great buy

I was very pleased by the amount of information that was given in the book with regard to what does and does not positively evaluate my home. Information such as renovation resale prices was crucial for me to learn, and this book had that in spades. Additionally, the information provided on how to take advantage of the housing market as the market is cooling down is essential. People who want to know what to do in case of a housing bubble would be strongly advised to find the info contained in House Poor. I strongly recommend this book. Your wallet may thank you for it.