Is a home an asset or liability? - Page 2

Amber Lamps · 12-14-2009, 11:03 PM

Quote:

Originally Posted by askmrjesus

Because he slept in a tent once, and figured out the difference.

If you're not getting divorced, or fleeing the country, a house is an asset.

JC

Hahahaha! Good one!

Cutty72 · 12-14-2009, 04:36 PM

It is a liabilty when you first purchase it.

As you maintain/improve it and make payments on it, it becomes an asset.

An asset by def is an item of ownership convertible into cash, which a house is.

pauldun170 · 12-14-2009, 04:44 PM

I own a structure called a house.
In order to purchase this structure, I got SECURED loan.

The value of the home after the loan agreement is irrelevant.
It's mine. Its an asset.

Basic stuff

t-homo · 12-14-2009, 05:00 PM

Quote:

Originally Posted by pauldun170

I own a structure called a house.
In order to purchase this structure, I got SECURED loan.

The value of the home after the loan agreement is irrelevant.
It's mine. Its an asset.

Basic stuff

I consider it an investment at that point.

Particle Man · 12-14-2009, 04:47 PM

both

it's an asset until something happens to it and makes it a liability

t-homo · 12-14-2009, 04:47 PM

The way I have always been taught (by parents and as a finance major) an asset is something that will gain money for you and a liability is something that will lose you money.

Homeslice · 12-14-2009, 04:53 PM

An asset is simply something you own that has value. Whether it succeeds in making you any money is irrelevant.

pauldun170 · 12-14-2009, 04:55 PM

Quote:

Originally Posted by Homeslice

An asset is simply something you own. Whether it succeeds in making you any money is irrelevant.

In order for it to be an "asset" it has to be something you can exchange for something else of value.

Otherwise its just stuff.

101lifts2 · 12-15-2009, 12:10 AM

Quote:

Originally Posted by homeslice

an asset is simply something you own that has value. Whether it succeeds in making you any money is irrelevant.

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pauldun170 · 12-14-2009, 04:53 PM

Quote:

Originally Posted by t-rock

The way I have always been taught (by parents and as a finance major) an asset is something that will gain money for you and a liability is something that will lose you money.

Wrong

An asset is something that can be converted into cash or exchanged for something of value.

There is no promise of gain.

Liability is a debt obligation or whatever you are responsible for.

What are you a freshman?

View Poll Results: Is a home an asset or liability?
Asset	17	56.67%
Liability	7	23.33%
I live in tater's whore of an ex-wife's chlamydia infested vag.	6	20.00%
Voters: 30. You may not vote on this poll

12-14-2009, 04:47 PM	#5
Particle Man Custom User Title Join Date: Nov 2008 Location: Central NY Moto: 2003 SV650S Posts: 14,959	both it's an asset until something happens to it and makes it a liability __________________ I'm not "fat." I'm "Enlarged to show texture." Handle every stressful situation like a DOG: If you can't eat it or hump it, pi$$ on it & walk away.

12-14-2009, 04:53 PM	#7
Homeslice Elitist Join Date: Nov 2008 Location: SF Bay Area Moto: Gix 750 Posts: 11,351	An asset is simply something you own that has value. Whether it succeeds in making you any money is irrelevant. Last edited by Homeslice; 12-14-2009 at 04:58 PM..

12-14-2009, 04:47 PM	#6
t-homo WSB Champion Join Date: Feb 2008 Location: Springfield, MO Posts: 7,146	The way I have always been taught (by parents and as a finance major) an asset is something that will gain money for you and a liability is something that will lose you money.