Welcome, Guest. Please login or register.
Did you miss your activation email?
November 21, 2008, 02:59:10 PM
Home Help Search Login Register
News: Welcome back to Project:Senso's new forum! The knowledgebase and main website are still being revamped, please be patient!

+  Project Senso Forums
|-+  The Lounge
| |-+  Anything under the sun!
| | |-+  Finance Interest Group (Moderators: alfiee, jag82)
| | | |-+  Is Your House An Asset?		 0 Members and 1 Guest are viewing this topic. « previous next »
Pages: [1] 2 Print
Author Topic: Is Your House An Asset?  (Read 4305 times)
Taymastery
Guest
« on: March 26, 2005, 02:53:58 PM »
Just curious, is your house an asset?
Logged
sky
Full time Entrepreneur
*

Reputation: 0
Offline Offline

Posts: 105



View Profile
« Reply #1 on: March 26, 2005, 03:45:52 PM »
it is a liability.

without it, u wont be in debt for 50 yrs or maybe more to the bank or government!
Logged
Taymastery
Guest
« Reply #2 on: March 26, 2005, 05:12:25 PM »
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
Logged
TommyShi
Guest
« Reply #3 on: March 26, 2005, 06:04:26 PM »
The house is an asset the loan is a liability. People often confuse them.
Logged
sky
Full time Entrepreneur
*

Reputation: 0
Offline Offline

Posts: 105



View Profile
« Reply #4 on: March 27, 2005, 12:13:59 AM »
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
Logged
sky
Full time Entrepreneur
*

Reputation: 0
Offline Offline

Posts: 105



View Profile
« Reply #5 on: March 27, 2005, 12:16:32 AM »
Quote from: Taymastery
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



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. Smiley
Logged
TommyShi
Guest
« Reply #6 on: March 27, 2005, 07:43:56 AM »
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... Tongue
Logged
Taymastery
Guest
« Reply #7 on: March 27, 2005, 10:22:53 AM »
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? Tongue

*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 Cheesy
Logged
sky
Full time Entrepreneur
*

Reputation: 0
Offline Offline

Posts: 105



View Profile
« Reply #8 on: March 27, 2005, 02:56:53 PM »
Quote from: TommyShi
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... Tongue


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
Logged
sky
Full time Entrepreneur
*

Reputation: 0
Offline Offline

Posts: 105



View Profile
« Reply #9 on: March 27, 2005, 03:00:05 PM »
Quote from: Taymastery
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? Tongue

*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 Cheesy



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. Smiley
Logged
Taymastery
Guest
« Reply #10 on: March 27, 2005, 03:14:15 PM »
Quote
after maybe 2-3 yrs will get back what they originally paid for the land and the development.


Sorry sky don't get what u mean..

Quote
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 $$,


If I get your idea.... no tycoon would want to build a shopping centre next to their home on the same piece of land ....  rolleyes
Logged
legato
Part-time Entrepreneur
*

Reputation: 0
Offline Offline

Posts: 18


View Profile
« Reply #11 on: March 28, 2005, 05:22:53 PM »
Quote from: Taymastery

But am I right to say that your house is a/an
(Long Term) ASSET when YOU SELL IT


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.
Logged
http://advantlogic.com
TommyShi
Guest
« Reply #12 on: March 31, 2005, 05:51:28 AM »
Quote from: legato


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.
Logged
win
Core Team
Full time Entrepreneur
*

Reputation: 6
Offline Offline

Posts: 171



View Profile
« Reply #13 on: April 12, 2005, 03:59:24 PM »
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.
Logged
exige
Growing Startup
*

Reputation: 0
Offline Offline

Posts: 92



View Profile WWW
« Reply #14 on: April 18, 2005, 10:32:44 AM »
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.
Logged
Warren Buffett: "Be fearful when others are greedy, and be greedy when others are fearful."
Pages: [1] 2 Print 
« previous next »
Jump to:  


Login with username, password and session length

Powered by MySQL Powered by PHP Project: Senso Discussion Forums
Powered by SMF 1.1.1 | SMF © 2006, Simple Machines LLC
Joomla Bridge by JoomlaHacks.com 		Valid XHTML 1.0! Valid CSS!
Joomla Templates and the Joomla Book