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How to live comfortably
Dod
#21 Posted : Tuesday, December 14, 2010 8:58:18 PM
Rank: Member

Joined: 10/4/2010
Posts: 223
Location: Afghanistan
1. Homes are only a good investment when the value of the home increases.

2. Home values occasionally decrease..like what happened on the West/USA

Your solution – make your home a home and make your investments an investment.

The primary function of a home is a place to live. If you make a profit when you sell your house that is great.

Too many homeowners become real estate speculators instead of house shoppers.
The rich have money working for them; the poor and the middle class are going to work for money.
X13united
#22 Posted : Tuesday, December 14, 2010 9:07:17 PM
Rank: Member

Joined: 8/26/2010
Posts: 124
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.
kadonye
#23 Posted : Tuesday, December 14, 2010 9:45:50 PM
Rank: Elder

Joined: 5/30/2009
Posts: 1,390
Bwana x13, keep that vibe of elder,veteran hello away.In your understanding(not just from kiyosaki's rules) why is my residential unit a LIABILITY and not ASSET?
What a wicked man I am!The things I want to do,I don't do.The things I don't want to do I find myself doing
Jus Blazin
#24 Posted : Tuesday, December 14, 2010 11:59:17 PM
Rank: Elder

Joined: 10/23/2008
Posts: 3,966
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.
Luck is when Preparation meets Opportunity. ~ Lucius Annaeus Seneca
Pablo
#25 Posted : Wednesday, December 15, 2010 1:06:17 AM
Rank: Member

Joined: 3/17/2008
Posts: 567
Location: Nairobi
@kadonye - Wachana na hawa watu.

If your residential home saves you 50k of rent every month. Then it has earned you 50k. Plain and simple.

Those who are saying a house is a liability is cause they dont have one and they see getting one is stress.

Once upon a time I also used to think like them and tried to justify it mostl to myself.
gohill
#26 Posted : Wednesday, December 15, 2010 8:17:07 AM
Rank: Member

Joined: 6/23/2010
Posts: 182
Location: Kenya
X13united wrote:
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.


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).
mwenza
#27 Posted : Wednesday, December 15, 2010 12:18:07 PM
Rank: Elder

Joined: 4/22/2009
Posts: 2,863
kadonye wrote:
2012 wrote:

@kadonye,

Indulge me kidogo for argument sake. If you work for govt and they give you a house to live in during your term of service, would that be your asset?

Of course this one is not an asset!If I build my house on my land, why would this be a liability?Bear in mind the rising rents...I have read Rich dad poor dad and I'm still not convinced.Just 1 hse sio hao kila place.



Am with you on this one 100%.
IF YOU EXPECT ME TO POST ANYTHING POSITIVE ABOUT ASENO, YOU MAY AS WELL SIT ON A PIN
mwenza
#28 Posted : Wednesday, December 15, 2010 12:20:31 PM
Rank: Elder

Joined: 4/22/2009
Posts: 2,863
gohill wrote:
X13united wrote:
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.


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.
IF YOU EXPECT ME TO POST ANYTHING POSITIVE ABOUT ASENO, YOU MAY AS WELL SIT ON A PIN
mwenza
#29 Posted : Wednesday, December 15, 2010 12:27:15 PM
Rank: Elder

Joined: 4/22/2009
Posts: 2,863
Pablo wrote:
@kadonye - Wachana na hawa watu.

If your residential home saves you 50k of rent every month. Then it has earned you 50k. Plain and simple.

Those who are saying a house is a liability is cause they dont have one and they see getting one is stress.

Once upon a time I also used to think like them and tried to justify it mostl to myself.



@Pablo.......My exact sentiments. Can't be put any better.

Endeleeni kulipa rent kwa hao ma-landlords if you truly believe owning a house is a liability.
IF YOU EXPECT ME TO POST ANYTHING POSITIVE ABOUT ASENO, YOU MAY AS WELL SIT ON A PIN
X13united
#30 Posted : Wednesday, December 15, 2010 1:14:58 PM
Rank: Member

Joined: 8/26/2010
Posts: 124
Guys. As someone said,it all goes back to ones school of thoughts.
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