3 ms·
> I see how a house can be considered an asset but if you sell your house where do you live? Give the house for rent and live in a smaller house.
by mindentropy 7y ago
> I see how a house can be considered an asset but if you sell your house where do you live?
Give the house for rent and live in a smaller house.
- mulmen 7y agoIs that smaller house still an asset?
- mindentropy 7y agoIt would be an investment and an asset, yes. If you take a loan for the smaller house you can pay it off using the rent of the bigger house. At the end you will have two houses. It can be a gift to your children as they do not have to struggle in life to buy a house which is a real pain. Comparing it with education, you cannot transfer education and its value. It will die with you. In IT there is a chance that your education will get outdated really soon with no value. This is similar to the housing market but atleast in this case there is a chance that the market will go up. In case of IT education there is no chance and the value will hit zero. For your retirement a house giving constant rent is I think your most valuable asset as you never know if you outlive your retirement savings.