If Robert .K bumps on this thread,he will perhaps spank some of our veterans n of course send them back to the 'hallo' n 'new f'. The rule of thumb applies all round n it states- kiyosukis first law- if it is not putting money in your pocket/bank acc/investment plans then its a liability. NOTE: The word is 'put' money n not 'save' rent as some veterans are interpreting.

The answer to the question whether a house/home is an asset or a liability mainly lies in the school of thought you come from. From the discussion, its clear that a house may be an asset or may not be an asset. Both could be true.

But when one says a house is a liability, then its totally different from saying a house is not an asset, since something can also be neither an asset nor a liability. The proponents of a 'House is a Liability' need to clarify this without raising any ambiguity in their explanations.

An asset can be defined as anything that has value. Robert K's definition is different in that he says it has to be something that generates cash flow. Again school of thought. IMHO I think its an asset, and when its not, it falls under neither an asset nor a liability. Even if it was mortgaged and its rental income (were it rented out) was below the monthly installment, OR the monthly installments were more than what you were paying as rent previously (if you now live in the house), the difference that you would be paying would still be considered as monthly investment into the home.

Which again would again beg more questions as to whether you can invest in something that can be neither an asset nor a liability. My 2 cents.

Must i always do things as per Kiyosukis first law? I have my own laws and that's why i say that ka plot i have is an asset. Ha came with that law so that he can sell that book to you and take money from you(on a light note lakini).

@gohill.........Some people think that the written word is law. Thats why we have so many schooled people who are not educated.

Guys. As someone said,it all goes back to ones school of thoughts.

In my opinion, a house is an investment. Just that the return on investment is very low. As it appreciates, you can sell and move on higher. Investing in a business is little more risky and so you can either make money or lose. not so with your house in kenya. You ALWAYS earn some rent every month.

HOUSE IS AN ASSET!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

So if I choose to live in my house it is not an asset...

but if I rent out the same house for say 30K and then use that money to rent a similar house to live in then it is an asset?????

Cmon do not take Robert Kick-you-in-the-sacki literally

He is rich because you keep buying his bullcrap books

Who says that getting a home and investing are mutually exclusive????

I home is a real estate investment with all the trappings of the investment plus personal security.

For those who would rather invest the 5M and get returns to pay rent they only misconception here is that the 5M home saves you the rent and appreciates in value. In addition try getting a 3M loan to buy a another investment, see what question your bank will ask you first. DO YOU OWN YOUR HOME??

I once discussed with JM (Equity) and he told me of a kikuyu saying 'mundu dage tonga na ido ciake' roughly translated to mean you cannot get rich with your resources only. You need ideas and financial resources to cross the bridge.

asset or liability?
i am 2 work 4 20 years b4 retiring.

option1.
rent: 35000/- * 12*20 = 8400000/-
pay the house rent, retire and go home empty handed.

option2.
plot: 500000/-
loan to build a house 3500000/-
total cost 4000000/-
repayment within 5years.
after 5 ers one have a house n no more house rent. retire at 20th er, go 2 shaggs n rent out the house n eat the pension

verdict? so a house is an asset n only time can tell so!! 10 cents

Kiyosaki this kiyosaki that! many people are being fooled by this motivational books.if all investment knowledge was in books then librarians would be millionares.