Your house is not an asset !
Most people believe their house is an asset and they will swear by it and not let you tell them otherwise!!
An asset
“Something valuable that an entity owns, benefits from, or has use of, in generating income.... “
An easier way to ask the question is
Does it make you money or cost you money each month?
If you live in your house and it is your family home, it means your house is a liability !
Every month your house costs you money in terms of repairs, renovations, bills, taxes, Mortgage, insurance and general upkeep! So every month you are shelling out Cash !!
Your house IS an asset if you can make it earn money each month. How can you turn your house into an asset ?
- Rent out a room or 2
- Rent out your drive
- Use part of your house as an office
- Refinance and use the equity to invest in income generating assets
So can you make your house into an income generating asset ?
Sustainable Global Investments
7 年The family home may not generate income but it has value, that could go down short term perhaps up over the long term. I'd be comfortable thinking of it as an asset.
Owner of Saroye Stores
7 年Gaurav Saroye