Is a home an asset or liability?

[fasternyou929]

Originally Posted by t-rock

I will admit, I think completely differently than most people as far as business and finance goes.

It's good to think differently, I'll never discourage that.

But I wouldn't encourage using basic financial terms in new, ambiguous ways.

[pauldun170]

Originally Posted by fasternyou929

It's good to think differently, I'll never discourage that.

But I wouldn't encourage using basic financial terms in new, ambiguous ways.

[t-homo]

Has anyone ever read Rich Dad, Poor Dad by Robert Kiyosaki? If so, my mindset is closer to his than normal.

[pauldun170]

Originally Posted by t-rock

Has anyone ever read Rich Dad, Poor Dad by Robert Kiyosaki? If so, my mindset is closer to his than normal.

Finance majors...



Kiyosaki is an asshat.

[t-homo]

Ok so I guess the question I was trying to get at is a little more complex.


When you buy a home, you take on the house as an asset and the mortgage and related fees as liabilities. I think we all agree on this. Which one out-weighs the other in long term and/or short term?

[Homeslice]

Originally Posted by t-rock

When you buy a home, you take on the house as an asset and the mortgage and related fees as liabilities. I think we all agree on this. Which one out-weighs the other in long term and/or short term?

Too many factors.......Your interest rate, how much you spend maintaining/fixing it, how much it appreciates (if at all).........And how much you could have made by investing that money in other things instead.

Long term (30+ years), the stock market makes a better return than real estate does.

But, when you're approaching retirement, do you really want to be still renting, with nothing to show for all the rent you paid?

[t-homo]

Originally Posted by Homeslice

Too many factors.......Your interest rate, versus how much it appreciates (if at all).........How much you could have made by investing that money in other things instead.

Long term (30+ years), the stock market makes a better return than real estate does.

But, when you're approaching retirement, do you really want to be still renting, with nothing to show for all that money you spent?

Are you including rental properties in that assessment?

Renting is the absolute worst as far as long term goes.

[Homeslice]

Originally Posted by t-rock

Are you including rental properties in that assessment?

Yes if you're just talking about the VALUE of those properties.......But if you're including the rental income you get from them as well, that's a different story.

[t-homo]

Originally Posted by Homeslice

Yes if you're just talking about the VALUE of those properties.......But if you're including the rental income you get from them as well, that's a different story.

When I talk about a house or property, i consider everything included with it. Property, rent from that property, mortgage, upkeep and maintenance, property taxes, etc.

[101lifts2]

Originally Posted by t-rock

Are you including rental properties in that assessment?

Renting is the absolute worst as far as long term goes.

It really depends on the situation and if you stay there long. Most people move within 5 years anyway, so they are always paying interest, closing costs, property taxes plus maintenance.