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View Poll Results: Is a home an asset or liability? | |||
Asset |
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17 | 56.67% |
Liability |
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7 | 23.33% |
I live in tater's whore of an ex-wife's chlamydia infested vag. |
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6 | 20.00% |
Voters: 30. You may not vote on this poll |
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Thread Tools | Display Modes |
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#11 |
WSB Champion
Join Date: Feb 2008
Location: Springfield, MO
Posts: 7,146
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The way I have always been taught (by parents and as a finance major) an asset is something that will gain money for you and a liability is something that will lose you money.
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#12 |
WERA Yellow Plate
Join Date: Nov 2009
Location: Calgary
Moto: Gs500F
Posts: 683
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I consider my home an asset. I would be paying just as much if not more for a rental unit and I did not buy more home that I need. The market here for the type of home I own is not dropping, and I am not house poor.
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#13 |
Serious Business
Join Date: Nov 2008
Location: New York
Moto: 1993 ZX-11 2008 CBR1000rr
Posts: 9,723
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Lets revisit your question is a home an asset or liability.
Lets say I bought my house cash. What happens to your question? What happens in the case where the value of the home exceeds the debt obligation? what happens to the extra? |
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#14 | |
SFL Expatriate #2
Join Date: Nov 2008
Location: Raleigh, NC
Moto: CBR1000
Posts: 2,043
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And the value of the asset is current market price less your current mortgage payoff. If that gives you a negative number your house has become a liability, which will become painfully evident should you need to relocate. |
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#15 |
WSB Champion
Join Date: Feb 2008
Location: Springfield, MO
Posts: 7,146
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For the typical american. Bought the house at market value on a 15 - 30 year loan at 4.5 percent interest (estimated average mortgage rate).
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#16 |
Elitist
Join Date: Nov 2008
Location: SF Bay Area
Moto: Gix 750
Posts: 11,351
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An asset is simply something you own that has value. Whether it succeeds in making you any money is irrelevant.
Last edited by Homeslice; 12-14-2009 at 04:58 PM.. |
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#17 |
WERA White Plate
Join Date: Nov 2008
Location: Austin, TX
Moto: '01 Aprilia Falco
Posts: 1,041
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Huh, I always figured an asset was something I could turn into money, and a liability was something that it'd take money to get rid of.
Edit: Oh, and whatever way you look at it, my house is currently making me money. |
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#18 | |
WSB Champion
Join Date: Feb 2008
Location: Springfield, MO
Posts: 7,146
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#19 | |
Serious Business
Join Date: Nov 2008
Location: New York
Moto: 1993 ZX-11 2008 CBR1000rr
Posts: 9,723
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An asset is something that can be converted into cash or exchanged for something of value. There is no promise of gain. Liability is a debt obligation or whatever you are responsible for. What are you a freshman? |
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#20 | |
Serious Business
Join Date: Nov 2008
Location: New York
Moto: 1993 ZX-11 2008 CBR1000rr
Posts: 9,723
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Otherwise its just stuff. |
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