Everybody told you that your house is an asset from School and college. Yes, they are true but they never tell you that whose asset is your house actually they don't know whose asset is their house.
"Your house is not your asset" concept is brought by the famous author and entrepreneur Robert Kiyosaki.
For Rich asset is those things that generate money for them if anything that makes them lose their money from their pocket for them it is lability. Your house takes money every month from your pocket from different thinking like repairing, gas, electricity bill, house materials and many more. But if your house generate money for you it becomes an asset like giving a room for rent.
You think that If it is not my asset than whose asset is it. Your house is the assets of Bank and Government.
How my house is an asset for the Bank and Government?
When you buy a house there are maximum chances that you are going to get it in a loan and the loan you take it is from the bank which means you have to pay the loan with high interest. Anything which generates income is an asset. the high interest that you pay is their income so this why your house is an asset for Bank.
For Government, you have to pay the tax every year why it is. It is your house why you have to pay the tax to the government because the government wants to control/the why of saying it is your for to say to others but if I want I can take it from you anytime and the tax that we pay is the source of income for them.
So, Government our house is an asset but for the bank when you complete paying all the loan it will be no longer an asset for them.
If I sell my house. What will be an asset or a liability?
It is upto you to make a liability an asset or an asset to a liability.
When I buy a house at $10,000 and sell it at $15,000 It will an asset for me but if I sell the house at a low price then it will be a liability because it takes money from my pocket. In the first case, it put money in my pocket so it is an asset.
When you are going to buy a house, you should know you are going to get in good debt or bad debt. If you want to know what is good debt and bad debt, Click Here
0 Comments