Quote:
Originally Posted by Phanuthier
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.
|
No, I don't mean an investment. In the text "Personal finance" (Kapoor/Dlabay/Hughes), it had a section on the idea of looking at your house as a liability when creating your financial plans. The central thought was that, because until the time you sell it, it will most likely be requiring money for upkeep, and should be regarded as a liability in your plans (which would revolve mostly around cash flow). However, it is still a fixed asset when you are looking at your overall net worth (i.e. something worth something, but not immediately convertable to cash). I tried to
separate out the ideas of an asset in net worth vs cash flow when I made the comment...I obviously missed.