Your House=Still an asset

**wully00** · 08-08-2007 12:00 AM

For some reason unknown to myself, my last thread was closed.

I've gotten a few PM's continuing the conversation, so I thought I'd make a new post...

**akula** · 08-08-2007 12:39 AM

There are more interesting things to talk about, such as your printing business, and what you're doing to hit your objectives for this quarter

**Young Spark** · 08-08-2007 12:50 AM

^^ W/B Akula... haven't seen you here lately

**Cognition** · 08-08-2007 05:20 AM

Originally Posted by wully00

For some reason unknown to myself, my last thread was closed.

I've gotten a few PM's continuing the conversation, so I thought I'd make a new post...

Here's the long and short of it: it depends. There is no definitive answer for the question, "Is your house an asset?" There are many different situations and circumstances which lead to different answers.

Enough of this already.

**Scott Bradley** · 08-08-2007 10:22 AM

As Robert Kiyosaki says...

An rich persons definition of an asset is something that puts money in your pocket month in and month out.

A liability is something that takes money out of your pocket month in and month out.

According to these definitions I personally believe that your house is a liability because you are paying the mortgage, insurance, taxes, lights, etc etc...

The name of the game is cashflow...

Yeah you may be getting appreciation...but you are not making your money when you buy...only when you sell...

Rich people make their money when they buy...

What do you think?

**wully00** · 08-11-2007 11:33 PM

Originally Posted by akula

There are more interesting things to talk about, such as your printing business, and what you're doing to hit your objectives for this quarter

Sorry to keep posting this, I just got a few PM's asking why it was closed... I agree that what were doing is more interesting...

**Young Spark** · 08-11-2007 11:52 PM

^^ Because it was beginning to turn into a battleground. Debate? It could've been, but there were boundaries that had to have been watched out for, unfortunately, them boundaries were crossed.

**John Stafford** · 08-12-2007 01:33 PM

Hello,

In my opinion, your house is an asset if you don't
owe anything on it and it appreciates faster then
your other payments for upkeep.

If you use it as a rental and it's positive cashflow
then it's also an asset. Sorry I missed the
battle :-)

John

**wully00** · 08-12-2007 02:11 PM

Some people must have been interested enough to message me about it. I found it interesting the different ways people value investments -- cash stream vs appreciation vs intrinsic value. There wasn't meant to be a right or a wrong answer, I thought there were some good points. I didn't mean to waste anyones time.

**wully00** · 08-12-2007 02:13 PM

Originally Posted by John Stafford

Hello,

In my opinion, your house is an asset if you don't
owe anything on it and it appreciates faster then
your other payments for upkeep.

If you use it as a rental and it's positive cashflow
then it's also an asset. Sorry I missed the
battle :-)

John

I agree completely. Maybe RDPD didn't make sense in terms of cash flow assets because I've taken one too many accounting classes.

Michael

**Young Spark** · 08-12-2007 07:27 PM

Some people must have been interested enough to message me about it. I found it interesting the different ways people value investments -- cash stream vs appreciation vs intrinsic value. There wasn't meant to be a right or a wrong answer, I thought there were some good points. I didn't mean to waste anyones time.

When you have 2 people (or more) going back and forth about "this is not an asset, tis a liability" and vica versa, it tends to get a bit "ugly" when it comes to proving their point. IDK, but I thought it needed to be removed myself and if somebody PM'ed you about it, you should've discussed through PM with them about it, not post a second topic on the same subject after the first was removed.