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You've taken "Rich dad, poor dad" too literally it seems. A house can be an asset or liability, depending on its use. If you live in it, it certainly earns you
by lazyjones 7y ago
You've taken "Rich dad, poor dad" too literally it seems. A house can be an asset or liability, depending on its use. If you live in it, it certainly earns you something, it replaces the need for renting a space to live in. If you own it and don't use or rent it, it can be a liability if it's not even a suitable investment vehicle (e.g. with stable or falling prices).
- simplecomplex 7y agoIt’s the accountants who’ve taken things too literally.
- dragonwriter 7y ago> A house can be an asset or liability, depending on its use. A house, per se, is an asset. It may or may not have liabilities attached to it. (Or produce maintenance expenses, which is a different thing altogether.) > If you own it and don't use or rent it, it can be a liability if it's not even a suitable investment vehicle (e.g. with stable or falling prices). You seem to have confused a depreciating asset with a liability.