is an house an asset or a liability?

[Deleted member 28873]

Considering the fact that in building an house you have to spend lot of money on the materials needed and also hired labour and even in the purchase of land .most people believe that owning an house is a great asset but renting an house is a big liability but necessary liability it takes away money from your pocket on a monthly or yearly basis depending on your rent.but in some country where you have to pay mortgage on every house.

 

[cmoneyspinner]

Many home buyers have learned the hard way that not all houses turn out to be a wise investment. However, in theory, a house should be an asset. Even though you may have to create a liability (such as a mortgage) to purchase a home … the value of your home should appreciate over the years and be much greater that the debt or the loan that you have to pay off. A mortgage note is usually paid off after about 30 years. But many people live in the home for longer than that (some happy marriages last for 60 years) and the homeowners often leave the home to their children or even grandchildren.

 

[btaliat]

Asset is what brings you in money while the laibitly is the one that takes away money from you. So efidd you can classify your house, it depends on whether it gives you money or it takes away your money. This will give you a clue where to categorize your house. To me, it is an asset.

 

[IamDozzy]

A house is definitely an asset because it doesn't depreciate. Imaging buying a house for $500 as at 2008, by the time you would want to sell the house in 2021 , it will go for $10,000 to $20,000 depending on how developed the environment it and if the place has evolved from a town to a mega city. This way its always advisable to invest in assets like houses, lands etc because it doesn't depreciate unlike a car.

 

[Augusta]

Considering the fact that in building an house you have to spend lot of money on the materials needed and also hired labour and even in the purchase of land .most people believe that owning an house is a great asset but renting an house is a big liability but necessary liability it takes away money from your pocket on a monthly or yearly basis depending on your rent.but in some country where you have to pay mortgage on every house.

If you mean owning your own house? Then it is no liability especially in the future. The only issue one has is trying to build at the initial stage which will need good money but after that nothing like liability, it becomes an asset which you can own for life . I will prefer to build a house than even buy a car

 

[Hina]

Unless you either owe more money on your house than your house is worth on the open market, or are paying more interest per year than you would otherwise pay in rent then your house is an asset - and it gives you somewhere to live (versus opportunity cost of rent). I’m deliberately leaving out movements in the value of your house because these are - in the short term at least - beyond prediction.

 

[Shigobad2020]

A house will always and forever be an asset because it never depreciated even jfbit get old , the house is still very much standing on a land which is like gold, if you build a house today and decided to sell it in 10years time, you will still get more than your money back, but a car is not an asset to me.