Comments on: Is your home an asset? A simple question with a not so simple answer …

By: brandon

brandon — Wed, 08 Jun 2011 20:19:12 +0000

I think that the traditional accounting method of determining one’s net worth still requires you to count the home as an assest and the mortgage as a liability, while hopefully realizing some equity on your personal balance sheet.

What’s most useful about Kiyosaki’s viewpoint though is forcing yourself to change your perspective and not think of the home as such. This forces you to begin thinking about creating other assets to generate income.

If we were all sold out on this idea then we would rent a dwelling while owning rental properties on the side. We don’t do that because the benefits of home ownership are worth the “liability.”

By: Adrian

Adrian — Thu, 26 Aug 2010 21:23:27 +0000

@ Oahu – thus putting money IN your pocket. Nice … and, thanks!

By: Oahu real estate

Oahu real estate — Thu, 26 Aug 2010 04:58:20 +0000

We increase our assets by putting our money in savings accounts,or mutual funds. Rental property is another popular asset in which to invest, but it’s only an asset if the monthly income from rents, plus any tax advantages, is more than the monthly outlay for the property.

By: Why get your knickers in a knot over Robert Kiyosaki? « How to Make 7 Million in 7 Years™

Tue, 24 Mar 2009 09:20:22 +0000

[...] to make a critically important point (in his famous book Rich Dad, Poor Dad) that I covered in my earlier post on this [...]

By: AJC

AJC — Thu, 27 Nov 2008 23:23:06 +0000

@ Suzanne – Makes perfect sense to me, too

By: suzanne Rogers

suzanne Rogers — Thu, 27 Nov 2008 22:03:04 +0000

This is my thought on the matter….A house is a liabilty if you are living in it and have to pay the mortgage…so if you lose your job, who would pay the bill? Definitely a Liability…BUT, if you rent the place out and have someone else paying/covering you mortgage payment, and you lose your job…to me this is an asset because you are still making/paying money on your property….am I right? This makes total sense to me!
Suzanne

By: Millionaire by 30? « How to Make 7 Million in 7 Years™

Millionaire by 30? « How to Make 7 Million in 7 Years™ — Tue, 17 Jun 2008 16:15:44 +0000

[...] However, here is where I differ: for MOST people, it’s the only way that they will get financially free for lots of psychological/emotional reasons, more than strictly financial. Also, I do agree with the ‘forced saving’ and ‘forced appreciation’ that it can give you (provided that you do something with the appreciation … you don’t want to die ‘house rich / cash poor’!). [...]

By: Who is the Devil’s Advocate’s “devil’s advocate”? « How to Make 7 Million in 7 Years™

Thu, 01 May 2008 11:52:42 +0000

[...] Your house is NOT an asset or Your house IS an [...]

By: AJC

AJC — Sun, 20 Apr 2008 16:09:59 +0000

@ Schem – Most people would be excited … I guess I’m doing my job

PS Now, I hope you’ll be motivated and step up to DO something about it? Keep us posted on your progress … AJC.

By: SCHEM

SCHEM — Sun, 20 Apr 2008 08:03:10 +0000

ITS DEPRESSING CAUSE ILL MAKE 1.5 MILLION $
IN 30 YEAR (BEST SENARIO CASE)!!!!!!