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No, a house is not an asset...
Rank: Veteran Joined: 11/17/2012 Posts: 1,461 Location: Ngong Forest
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symbols wrote:Ngong wrote:Zanker told us, “I took Kiyosaki’s brand and made it bigger. The deal was I would get a percentage, and he reneged. We had a signed letter of intent. The Learning Annex is the greatest promoter. We put his ‘Rich Dad’ brand on a stage. We truly prepared him for great fame and riches. But when it was time for him to pay up, he said ‘no.’ ” This has taken years in court. I won even more money than I asked for from the jury, then he declared corporate bankruptcy. Oprah believed in him, and Will Smith believed in him, but he didn’t keep his promise to us.”  I guess that was his final lesson. is there some parallel between this guy and the so called televangelists?
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Rank: Member Joined: 11/17/2009 Posts: 398 Location: Where everyone knows you
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A House is an Asset - Period.
An asset something of value, which a house is. The same as the shares,Bonds etc. that you own.
- If I have a house that I rent, that gives me income, HOW can that be a liability.
- If I have house that I stay in, and therefore not pay rent, HOW can that be a liability.
Ask ANY account, when they prepare your accounts - where do they list houses, under assets or liabilities.
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Rank: Chief Joined: 5/9/2007 Posts: 13,095
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MatataMingi wrote:A House is an Asset - Period.
An asset something of value, which a house is. The same as the shares,Bonds etc. that you own.
- If I have a house that I rent, that gives me income, HOW can that be a liability.
- If I have house that I stay in, and therefore not pay rent, HOW can that be a liability.
Ask ANY account, when they prepare your accounts - where do they list houses, under assets or liabilities. Nice summary...
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Rank: Veteran Joined: 2/2/2012 Posts: 1,134 Location: Nairobi
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Kiyosaki says that an asset is something that brings-in money. He wrong. By his own thinking, an asset is also something that SAVES you money.
Question then is, is the cost of maintaining and insuring a house greater than that of renting similar premises?
I don't know of ANY COUNTRY in the world where the answer is yes!
Therefore, a house helps save your accommodation cost. Thus, even by Kiyosaki's own definition, a house IS an asset!
BTW: This is a guy who made his money by telling people how to become rich!
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Rank: Veteran Joined: 12/23/2010 Posts: 1,229
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Wendz wrote:For Sport wrote:Chaka wrote:Are you aware that "Rich Dad,Poor Dad" is a work of fiction? I also wouldn't be taking advice from someone who filed for bankruptcy. May be you need to read about the bankruptcy laws in US and see how the rich use it to protect their wealth and delay taking up their financial obligations (legally) until things look up. it does not mean they are broke. You do not file for bankruptcy unless you can cannot meet your financial obligations as and when they fall due.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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chiaroscuro wrote:Kiyosaki says that an asset is something that brings-in money. He wrong. By his own thinking, an asset is also something that SAVES you money.
Question then is, is the cost of maintaining and insuring a house greater than that of renting similar premises?
I don't know of ANY COUNTRY in the world where the answer is yes!
Therefore, a house helps save your accommodation cost. Thus, even by Kiyosaki's own definition, a house IS an asset!
BTW: This is a guy who made his money by telling people how to become rich! Perhaps RK has been quoted out of context. IMO a grandiose 7 bedrooom suburban house just for your occupation with your one kid is not a asset. Your second home in shaggz is also not an asset. These will end up being a net consumer of wealth. Life is short. Live passionately.
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Rank: Elder Joined: 3/19/2013 Posts: 2,552
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sparkly wrote:chiaroscuro wrote:Kiyosaki says that an asset is something that brings-in money. He wrong. By his own thinking, an asset is also something that SAVES you money.
Question then is, is the cost of maintaining and insuring a house greater than that of renting similar premises?
I don't know of ANY COUNTRY in the world where the answer is yes!
Therefore, a house helps save your accommodation cost. Thus, even by Kiyosaki's own definition, a house IS an asset!
BTW: This is a guy who made his money by telling people how to become rich! Perhaps RK has been quoted out of context. IMO a grandiose 7 bedrooom suburban house just for your occupation with your one kid is not a asset. Your second home in shaggz is also not an asset. These will end up being a net consumer of wealth.
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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I think he is talking in the context of US homeowners who 'buy" a half a million dollar house, and even with a 10% down payment and having paid for say 5 years, they still owe a whole lot on the house. This house can be repoed at any moment if you fall behind on your payments and also not mentioning the thousands in insurance and property taxes that you have to pay. In this instance, I can see why the house would be a liability coz if you lose your job or go through financial hardship, the house would no longer belong to you. In the Kenyan context where you own the house outright, the house is no longer a liability unless you don't have sufficient insurance and lets say a fire destroys the house, then its a liability. It all depends on circumstances.
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Rank: Veteran Joined: 12/23/2010 Posts: 1,229
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@Nabwire, I agree. Problem is people blindly following advice without bothering to analyze whether or not it applies to their circumstances. I wouldn't advice anyone here to stop aspiring to own a home / house. I think I will live in a house all my life. As will my children. And theirs.
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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I wouldn't follow Kiyosaki or Suze Orman or any other financial gurus blindly, I would just take bits and pieces of advice. Kiyosaki is like the kindergarten equivalent of financial knowledge, as long as you read his stuff ( preferably books borrowed from the library not bought)and graduate on to elementary, high school and eventually college and graduate school, then I would recommend. But if you stay stuck in his kindergarten level, you are in trouble.
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Rank: Veteran Joined: 3/25/2010 Posts: 939 Location: Nai
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In Kenya a house is an asset!! but if am spending between 60-70% from my only total income for next 10-15 years is it really an asset worth investing in??
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Rank: Elder Joined: 3/29/2011 Posts: 2,242
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Nabwire wrote:I wouldn't follow Kiyosaki or Suze Orman or any other financial gurus blindly, I would just take bits and pieces of advice. Kiyosaki is like the kindergarten equivalent of financial knowledge, as long as you read his stuff ( preferably books borrowed from the library not bought)and graduate on to elementary, high school and eventually college and graduate school, then I would recommend. But if you stay stuck in his kindergarten level, you are in trouble. @ Nabwire, kindergarten level is an overstatement. It should be lower than that- the one where u take kids and they sleep all day and only get their diapers changed and you pay for it! Books that teach on "how to get rich" are just like pyramid artists who thrive on the masses wanting to get rich quick. "Things that matter most must never be at the mercy of things that matter least." Goethe
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Rank: Veteran Joined: 12/23/2010 Posts: 1,229
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Gathige wrote:Nabwire wrote:I wouldn't follow Kiyosaki or Suze Orman or any other financial gurus blindly, I would just take bits and pieces of advice. Kiyosaki is like the kindergarten equivalent of financial knowledge, as long as you read his stuff ( preferably books borrowed from the library not bought)and graduate on to elementary, high school and eventually college and graduate school, then I would recommend. But if you stay stuck in his kindergarten level, you are in trouble. @ Nabwire, kindergarten level is an overstatement. It should be lower than that- the one where u take kids and they sleep all day and only get their diapers changed and you pay for it! Books that teach on "how to get rich" are just like pyramid artists who thrive on the masses wanting to get rich quick. They get rich because you buy their books. Not because they follow their own advice.
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Rank: Veteran Joined: 2/2/2012 Posts: 1,134 Location: Nairobi
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Which is a better book?
One titled "How I made my millions"
or
One titled "How YOU can make millions"
...and in which category do Kiyosaki's belong?
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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We should stop demonizing Kiyosaki. I have read his books and can understand what he means. In his books, he defines an asset as something that puts money in your pocket and a liability as something that 'removes/takes' money from your pocket. Thus he recommends that one should always strive to invest in things that put money in their pockets e.g rental property, land, business, shares, tbills etc. He says one should avoid liabilities such as cars (e.g a Range rover you buy at 5m, pay 4.5% insurance p.a., fuel 1k daily, and it's only worth 2m after 3yrs - a total waste of money).
I think the house he calls a liability is one where you are paying mortgage, maintenance and insurance whose total value may be more than the savings made in rent and value of the house in a depressed market such as the US housing market. However, this may not be the case in Kenya where the housing market has been very vibrant.
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Rank: Elder Joined: 3/29/2011 Posts: 2,242
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jaggernaut wrote:We should stop demonizing Kiyosaki. I have read his books and can understand what he means. In his books, he defines an asset as something that puts money in your pocket and a liability as something that 'removes/takes' money from your pocket. Thus he recommends that one should always strive to invest in things that put money in their pockets e.g rental property, land, business, shares, tbills etc. He says one should avoid liabilities such as cars (e.g a Range rover you buy at 5m, pay 4.5% insurance p.a., fuel 1k daily, and it's only worth 2m after 3yrs - a total waste of money).
I think the house he calls a liability is one where you are paying mortgage, maintenance and insurance whose total value may be more than the savings made in rent and value of the house in a depressed market such as the US housing market. However, this may not be the case in Kenya where the housing market has been very vibrant. If the use of the car is to put money in your pocket, then it is an asset. Some things like self aggrandizement ( eg like the pleasure one derives from driving such a car) cannot be quantified. As they say, one man's honey could be another man's poison. So, it all depends from individual to individual and cannot be a gospel truth. "Things that matter most must never be at the mercy of things that matter least." Goethe
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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Gathige wrote:jaggernaut wrote:We should stop demonizing Kiyosaki. I have read his books and can understand what he means. In his books, he defines an asset as something that puts money in your pocket and a liability as something that 'removes/takes' money from your pocket. Thus he recommends that one should always strive to invest in things that put money in their pockets e.g rental property, land, business, shares, tbills etc. He says one should avoid liabilities such as cars (e.g a Range rover you buy at 5m, pay 4.5% insurance p.a., fuel 1k daily, and it's only worth 2m after 3yrs - a total waste of money).
I think the house he calls a liability is one where you are paying mortgage, maintenance and insurance whose total value may be more than the savings made in rent and value of the house in a depressed market such as the US housing market. However, this may not be the case in Kenya where the housing market has been very vibrant. If the use of the car is to put money in your pocket, then it is an asset. Some things like self aggrandizement ( eg like the pleasure one derives from driving such a car) cannot be quantified. As they say, one man's honey could be another man's poison. So, it all depends from individual to individual and cannot be a gospel truth. Blowing millions just to 'feel good' and impress your peers and neighbours at your rented flat in kilimani doesn't make financial sense.
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Rank: Elder Joined: 3/29/2011 Posts: 2,242
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jaggernaut wrote:Gathige wrote:jaggernaut wrote:We should stop demonizing Kiyosaki. I have read his books and can understand what he means. In his books, he defines an asset as something that puts money in your pocket and a liability as something that 'removes/takes' money from your pocket. Thus he recommends that one should always strive to invest in things that put money in their pockets e.g rental property, land, business, shares, tbills etc. He says one should avoid liabilities such as cars (e.g a Range rover you buy at 5m, pay 4.5% insurance p.a., fuel 1k daily, and it's only worth 2m after 3yrs - a total waste of money).
I think the house he calls a liability is one where you are paying mortgage, maintenance and insurance whose total value may be more than the savings made in rent and value of the house in a depressed market such as the US housing market. However, this may not be the case in Kenya where the housing market has been very vibrant. If the use of the car is to put money in your pocket, then it is an asset. Some things like self aggrandizement ( eg like the pleasure one derives from driving such a car) cannot be quantified. As they say, one man's honey could be another man's poison. So, it all depends from individual to individual and cannot be a gospel truth. Blowing millions just to 'feel good' and impress your peers and neighbours at your rented flat in kilimani doesn't make financial sense. @ Jaggernaut, I used to think so until one time thugs broke into house and almost got to my bedroom. I purposed the day i will make some real cash, i will move from that locality to the leafy side " just to feel good and be enjoying a sound sleep". Life is short and is best enjoyed when one has means. "Things that matter most must never be at the mercy of things that matter least." Goethe
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Rank: Veteran Joined: 11/17/2012 Posts: 1,461 Location: Ngong Forest
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@ Jaggernaut, I used to think so until one time thugs broke into house and almost got to my bedroom. I purposed the day i will make some real cash, i will move from that locality to the leafy side " just to feel good and be enjoying a sound sleep". Life is short and is best enjoyed when one has means.
[/quote]
Uli manage kumove Bw. Gathige?
How is the feeling? pls!
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Rank: Chief Joined: 5/9/2007 Posts: 13,095
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Ngong wrote:
@ Jaggernaut, I used to think so until one time thugs broke into house and almost got to my bedroom. I purposed the day i will make some real cash, i will move from that locality to the leafy side " just to feel good and be enjoying a sound sleep". Life is short and is best enjoyed when one has means.
Uli manage kumove Bw. Gathige? How is the feeling? pls! [/quote] Just wondering whether he could have made the money he talked about in just a few hours 
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