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Unless a house does generate income it is a liability. I think most people underestimate this. There are some many people who can't pay their mortgage while th
by thdrdt 7y ago
Unless a house does generate income it is a liability.
I think most people underestimate this. There are some many people who can't pay their mortgage while they thought the house was an asset.
- munificent 7y agoFood is a liability too. Not all products exist to provide future value. Some provide value right now, like a place to live.
- frankbreetz 7y agoIf that's the case, why not rent? Anything that cost money, and doesn't create more money then it costs is a liability. They are just business terms everyone has to spend some money on liabilities.
- chii 7y agodifferent people value things differently. For a renter, they may value the lower cost (compared to buying a property to live), and invest the difference. Some people prefer to own their home because a renter cannot modify the home (usually). They may also prefer the stability. There's no universal answer really, since a lot of individual circumstance come into play making this choice.