Quote:
Originally Posted by blankall
Disagree.
I rent my place out. It's a business. A business where the assets exceed the debts and I build equity through it.
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Just because you are generating revenue, it doesn't mean that a mortgage exceeds the debt. Are you confusing debt payments (which are not coming out of your pocket) with debt? Whether you rent out a property or not, if you took out a mortgage, thats a debt. Bottom line.
Quote:
Originally Posted by Kerplunk
I have read in a few places that houses are best seen not as assets, but as liabilities. The reason being that, until you actually sell it (or rent it), it doesn't really make you money. If you think of it as an asset, you could see yourself as having a positive net worth, but still have an overall negative cash flow, which is what will really affect your day-to-day life, and how you can save for the future.
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Its a fixed asset. I think you maybe mean a investment? The idea you're probably thinking about is, you are always living in a house, so if your house is an investment and you liquidate it, then you don't have a place to life.