Project Senso Forums

Just curious, is your house an asset?

it is a liability.

without it, u wont be in debt for 50 yrs or maybe more to the bank or government!

But am I right to say that your house is a/an

(Long Term) ASSET when YOU SELL IT

(Short Term) LIABILITY when YOU BUY IT

The house is an asset the loan is a liability. People often confuse them.

house(asset)=loan=liability

therefore, house=liability

I didn't confuse them, I just stating the real facts of singapore nowadays.

but yes, you are right theoritically.

I'm just being philosophical. :p

ASSET when YOU SELL IT
LIABILITY of the loan when YOU BUY IT
INVESTMENT when YOU BUY IT

really depends on how ones look at it, some buy houses to rent out, some to stay in, some as a gift etc. to different ppl it may mean different things. to a property agent, it may be a lead even.

but yes, you are right theoritically too. :)

actually, i would consider houses and car a liability even if fully paid. cause I have to maintain their condition and pay for their upkeep. and i'll lose money on the house if market value drops, lose money on the car due to depreciation.  :cry:

purely philosophical... :P

According to Robert Kiyosaki, this was his advice for those buying a property...

- He buys a piece of land for his house
- Splits the land into 'smaller' lands
- Makes the land looks 'great' and 'worth the cashies'
- Sell those pieces of land ----> cash for his house



What do u think eh? :P

*PS: My financial vocabulary isn't up to the standard yet, so sorry if tough to comprehend what I m saying but hope you get the idea :D

yes, thats what I'm talking about.

CARS definitely yes, because after the moment you buy, the value will start to deppreciate.

PROPERTY not neccessary, i.e. property boom in yr 2000, everyone make a huge profit selling properties! :p

thats what all the big property tycoons are doing isnt it? bid for a big piece of land, build a big shopping mall or condo on it, resulting in many many levels of smaller units, rent each one out for huge $$, after maybe 2-3 yrs will get back what they originally paid for the land and the development.

all common sense, no need for Mr Robert to explain. :)

Sorry sky don't get what u mean..



If I get your idea.... no tycoon would want to build a shopping centre next to their home on the same piece of land ....  :roll:

After selling your house, where are you going to stay?
If you need to buy another house for you to stay, then the only way you can profit is if you downgrade to a smaller house.

I'm afraid we have forgotten abt that.

house is an assets as it in your accounting period for next 5 years. any items which is more than 5 or 1 accounting period is an assets and is a fixed assets. it is a libability when you mortage your house.

I think it all depends on how you see it.
In accounting terms, the house is definitely an asset, while the loan is a liability as Sky has mentioned. No doubts about that.

But I wont say that owner-occupied houses are liabilities.. at least not all. They have a value, and could bring about a future benefit, ie; capital gains. Especially for landed properties in a good location with a freehold lease, even though it could be owner-occupied, I would say its an asset for it is most likely going to appreciate in value.

it can bring in value for example you own i house and you rent it so it bring in revenue or you some may even be passive income for the owner, if you own a house and you plan to stay there for the rest of your like it does not generate any income for the owner. so it depands on how you look at it and whats the question to ask cos there alot of different answer to this question.

I think the question here is "Is YOUR house an asset?". Depending on the location where the house is, it can be either or.

Singapore: HDB is certainly NOT an asset, you don't get to keep it after 90 years therefore all the money you plowed into it goes nowhere.

Overseas: Most countries are freehold, thus even if the land doesn't appreciate, most banks would take the land and/or house as security to be pledged for loans if need be.

Yep. To us a house is a liability until it starts making money for you.

So we rent it out and snuggle S$1,200 into our pockets each month.

At this point in time where the market demand is high, I agree completely on this. The only matter is whether the flat is in a preferred location; I am considering purchasing an executive condominium in the East within the next 2 years for stable rental income from expatriates or aircrew, and in the hope of appreciation due to the upcoming 2nd business district in Ponggol.

The rental market nowadays is indeed unbelievable.

My aunt has just rented out her 4 room flat to some expats, at a whooping S$2,500.

No it's not located near town, on the contruary, at Bukit Batok.

S$2,500 is still quite reasonable actually, I got a friend who got S$1,800 for a 2 room flat at Bukit Batok also.