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PMT Forum's MOST POPULAR Discussion Boards => General Questions and Discussions about Money => Topic started by: nevenash on Oct 24, 2008, 09:33 AM

Title: Do you consider a house as an asset or a liability?
Post by: nevenash on Oct 24, 2008, 09:33 AM
Typically, everyone will tell you that a house is an asset. Do you agree?
Title: Re: Do you consider a house as an asset or a liability?
Post by: dollarbabe on Oct 24, 2008, 09:57 AM
that is what everyone thinks. That's what I think of also before I read the book of Robert Kiyosake the Rich Dad Poor Dad. But then after reading the book i realized that no its not an asset but as a liability since it doesn't give as an income but just create more expenses t. So it cannot be considered an asset.  
Title: Re: Do you consider a house as an asset or a liability?
Post by: nevenash on Oct 24, 2008, 02:31 PM
Yes, I agree with you dollarbabe. Its really a liability if you will live in it. You gotta pay the taxes, maintenance, etc...
Title: Re: Do you consider a house as an asset or a liability?
Post by: pinoynetworker on Oct 24, 2008, 04:09 PM

although when you think about it... RDPD says an asset is anything that puts money in your pocket (even your mom?  :D) ... so in essence if you no longer pay monthly rentals for your abode then that would be less expense and thus more money in your pocket... plus your house can be used as collateral to secure a business loan... and if the business booms then that's money in your pocket... it actually depends on what you do...  :watchuthink:
 
Title: Re: Do you consider a house as an asset or a liability?
Post by: mlangseth on Oct 24, 2008, 06:37 PM
It could be both an asset or a liability - depends on your ability to pay for it.
If you live in it for a long time, then it is an asset because it is also your biggest investment, when you sell, you make a profit.
If you can not afford a house, but still buy one, then it is a liability,  this is the reason of the sub-prime mortgages in the US.
Do not buy if you cannot afford the maintenance of a house, much less, the mortgage.
You create equity in your house, the longer you live in it, the better (parang alkansya).
It is also your leverage against the plummeting stock market.
In short, it is an additional wealth to your net worth.
Title: Re: Do you consider a house as an asset or a liability?
Post by: anakbaryu on Oct 24, 2008, 11:33 PM
Title: Re: Do you consider a house as an asset or a liability?
Post by: gr8collector on Oct 24, 2008, 11:42 PM
its a buyers market in the US now.  lots of bargains to be found.  
Title: Re: Do you consider a house as an asset or a liability?
Post by: ric_TNT on Oct 24, 2008, 11:51 PM
Title: Re: Do you consider a house as an asset or a liability?
Post by: nvtellan on Oct 25, 2008, 01:43 PM
I still consider my house and lot to be an asset. Since nde pa kami tapos magbayad ng utang sa bank, sa ngayon liability din namin ito. Pero what can we do? Kailangan na namin bumukod at lumagay na sa tahimik/magulo. Kailangan na harapin ang buhay ng kaming mag-asawa at anak na lang. One must sometimes endure sufferings in order to enjoy the fruits of your labor.
Title: Re: Do you consider a house as an asset or a liability?
Post by: kiko2007 on Oct 25, 2008, 03:38 PM
sabi RDPD liabilities daw ang bahay. pero bakit sa cashflow 101 nilalagay pa din yung apartment na me negative income sa assets column? hhmmm... y lyk dat?  :huh:
Title: Re: Do you consider a house as an asset or a liability?
Post by: sneaker23 on Oct 25, 2008, 04:33 PM

sabi RDPD liabilities daw ang bahay. pero bakit sa cashflow 101 nilalagay pa din yung apartment na me negative income sa assets column? hhmmm... y lyk dat?  :huh:


baka walang nagrerent. :hihi:
tas nagbabayad ng tax pa.
Title: Re: Do you consider a house as an asset or a liability?
Post by: workoshore on Oct 25, 2008, 07:12 PM
Para sakin Asset yong munti kong lupa at bahay, next year tapos ko na hulog,thank you LORD...pag maganda ang location at development ng paligid,kasama siya sa pag appreciate ng price...yon nga lang para siyang nasa baol lang...hehehe...
at no worry pa kasi noon sa squatters area kami nakatira,tapos palagi may balita ng demolition,ang hirap ng ganon...minsan gulat ko sa tatay ko,nagmamadali paguwi tapos hanap ay gulok...hehehe,may demolition daw...

cheers...
Title: Re: Do you consider a house as an asset or a liability?
Post by: nevenash on Oct 25, 2008, 10:33 PM

sabi RDPD liabilities daw ang bahay. pero bakit sa cashflow 101 nilalagay pa din yung apartment na me negative income sa assets column? hhmmm... y lyk dat?  :huh:


This can be categorized as toxic asset. We have to be aware that we live in a world of duality(good and bad). If there's a good investment, there's also bad investment. I believe R. Kiyosaki's intention why he included this to Cashflow 101 is to teach us how to differentiate which one's are the good and bad investments. And its your prerogative which one will you choose. I played Cashflow 101 organized by the Create Abundance Business Community. And soon I'll be having a first hand experience of the Cashflow 202 :applause:.... I just can't wait
Posted on: Oct 25, 2008, 10:30 PM


although when you think about it... RDPD says an asset is anything that puts money in your pocket (even your mom?  :D) ... so in essence if you no longer pay monthly rentals for your abode then that would be less expense and thus more money in your pocket... plus your house can be used as collateral to secure a business loan... and if the business booms then that's money in your pocket... it actually depends on what you do...  :watchuthink:
 


simply put..

ASSET - anything that puts money in your pocket in a regular basis.
LIABILITY - anything that takes money from you pocket.
Title: Re: Do you consider a house as an asset or a liability?
Post by: poorguy on Oct 27, 2008, 06:00 PM
owning a house and lot is both an asset and a liability

we are a big family, and to have a house then is a liability, kc kung 7 kami pagaaralin, papakainin ng dad ko need to have a permanent place, d yung every year pwede tumaas yung rent ng bahay, it will be a like a big tapeworm na nakadikit sa pocket ng dad ko...

but now i think it is a liability na, kc when my father filed for closure sa business nya, and open a small area, and half of our property (more or less 500sqm) eh d na namamaximize...only 2 of my siblings live with my parents so parang ang laking sayang...

pero kung sakaling may nglease ng lot namin, or kung may pera lang kami to develope the area it will be an asset ulit  :D sadly wala pa kaya parang yung golden goose namin, nagmemenapause na  :D
Title: Re: Do you consider a house as an asset or a liability?
Post by: nevenash on Nov 07, 2008, 11:02 AM

owning a house and lot is both an asset and a liability

we are a big family, and to have a house then is a liability, kc kung 7 kami pagaaralin, papakainin ng dad ko need to have a permanent place, d yung every year pwede tumaas yung rent ng bahay, it will be a like a big tapeworm na nakadikit sa pocket ng dad ko...

but now i think it is a liability na, kc when my father filed for closure sa business nya, and open a small area, and half of our property (more or less 500sqm) eh d na namamaximize...only 2 of my siblings live with my parents so parang ang laking sayang...

pero kung sakaling may nglease ng lot namin, or kung may pera lang kami to develope the area it will be an asset ulit  :D sadly wala pa kaya parang yung golden goose namin, nagmemenapause na  :D



Golden goose? That's one of the most important thing I learned from our wealth course. I realized that for me to achieve financial freedom, I must take care of it and so it can lay me eggs. :thankyou:
Title: Re: Do you consider a house as an asset or a liability?
Post by: poorguy on Nov 07, 2008, 12:27 PM
@nevenash

baka si jack ang professor mo ah... :D

other people just cook their goose, or sell them agad,....... pero i agree its much better kung regular syang maglay ng golden egg...
Title: Re: Do you consider a house as an asset or a liability?
Post by: nevenash on Nov 10, 2008, 01:56 PM
@ poorguy

I'm afraid I don't know Jack. :hihi:
Title: Re: Do you consider a house as an asset or a liability?
Post by: poorguy on Nov 10, 2008, 04:19 PM
@nevenash

haha nice, i want to know the guy who can turn everything he touches into gold eh ahhaha. anyway may magic bean ako dito, care to trade for your cow?  :D

happy investing my friend
Title: Re: Do you consider a house as an asset or a liability?
Post by: zorah on Nov 25, 2008, 02:07 PM
I disagree with RDPD that it is a liability. I mean does he advice us to rent for life? a home is one of the basic necessities. We need shelter for us to work the next day.
Title: Re: Do you consider a house as an asset or a liability?
Post by: poorguy on Nov 26, 2008, 05:59 PM
@zorah

i agree that its a necessity...but depende sa capability mo, what r.kiyosaki is pointing out, is kung meron kang enough money to purchase a house and lot and enough money in the bank for business, ok lang yun, pero if pera mo eh sakto lng, like kung magiging burden yung pagpurchase mo ng bahay,medyo d nya inaadvice to buy it, instead use it for business.
 
example, kung kailangn mo pang magloan para makabili ng bahay,tapos magiging dagdag burden sya sa bills na kailangan mo din bayaran monthly..then i think it will be a liability....

if mayaman ka namn and then it will be an asset,especially kung yung location is developed, and pwede tumaas ng value yung nabili mong bahay/lupa

rdpd, is teaching the readers kung sakaling wala kang pera to purchase a house and lot, and imbes na ipagbili mo ng one-time payment, its better to use that money sa investments, and hoping that your business/roi will be enough to cover your rent, d ka pa ganun kahirap magstart ulit from the beginning....

case to case basis din, nung bata pa kami..my father bought the house kahit wala kaming pera, kc marami kaming magkakapatid, and its a burden kung palipat lipat pa kami ng bahay, just in case magtake advantage yung landlord namin to raise the rent...kaya, its better for him to buy it and talagang isang kahid isang tuka pa kami, we need to help the business when we get a little older, and naging debt free lang kami nung graduate na yung bunso namin sa college,

if you are not good in investing, baka imbes na may pambili ka na sa bahay mo nawala pa sa puhunan sa business...cgro in this case its better for you to buy the house nalng than rent, pero buti there are rent-to-own na kaya may good option nadin ...

anyway opinion ko lang din  :D i dont follow lahat ng nababasa ko sa book nya, maganda lang yung principles minsan, pero d lahat ng pinapayo nya is para sa lahat ng tao, may kanya kanya tayong strengths, kaya its better to focus on that...
Title: Re: Do you consider a house as an asset or a liability?
Post by: mlangseth on Nov 26, 2008, 06:59 PM
totally agree with poorguy (mostwonderfulguy) !!!
Title: Re: Do you consider a house as an asset or a liability?
Post by: zorah on Nov 26, 2008, 09:35 PM
Thanks poor guy for your post.
Title: Re: Do you consider a house as an asset or a liability?
Post by: tops5450 on Nov 26, 2008, 10:30 PM
It depends po sa atin kung papaano natin i-harness ang potential ng house into an asset. Kung magloloan po tayo to cover the payment of the house. Its just fine as long na ung kalahati ay ipa-rent mo  and stay in the other half to avoid paying rent or ipa-rent mo the whole house if ay sarili kang property na tinitirhan. Whichever ay sa tingin ko ay you are in the win win solution po iyan as long na ang perang pumapasok or rent ay enough to cover the amortization and other expenses. my 3 cents
Title: Re: Do you consider a house as an asset or a liability?
Post by: neo on Nov 26, 2008, 11:08 PM
IMHO, House is an ASSET. [period!] Just because it incurs expenses, doesn't follow it's a liability. I-compare nyo ang house sa San Miguel Corp's Factory. Di ba panay cost and na-i-incur dun? Wala namang income dun e. Sabi nga sa accounting, isa yung "Cost Center". Kung baga yung house ang factory where you, as a "product", are being "manufactured". The corporation, basically, has the power over the manufacturing cost. You, as the owner, also has the power what cost to incur in your house.

Isang point pa po. Ibenta nyo po yung house nyo (asset) for 2,000, malamang may bibili. Ibenta nyo po yung utang nyo sa credit card (liability) worth 3,000 for 2,000. May bbili kaya? :hihi: Pamimilosopo lang po. :hihi:
Title: Re: Do you consider a house as an asset or a liability?
Post by: tops5450 on Nov 26, 2008, 11:10 PM
DARKNIGHT
I believe the title of this topic "Do you consider a house an asset or liability. Mukhang naligaw ka ata kaibigan...

Please stick to the topic...

Peace.
Title: Re: Do you consider a house as an asset or a liability?
Post by: diamond on Nov 26, 2008, 11:44 PM
Ginagalit nyo si neo e. Hehe.

Dagdagan natin yang pamimilosopo mo.  Watchuthink?

If we are going to be strict about the definition of  liability as "something that takes money out of your pocket every month, wether you work or not", then life itself would be a liability.  :D

But then again, if asset is, "something that puts money into your pocket each month, regardless if you work or not", life can only be an asset if you work or you make money from your mere “existence” (ansarap nun!). Otherwise, you are worthless. Papayag ba kayo?

Unfortunately, life is not the issue here, otherwise, I think I've settled the score already. Hehe. I'ts the house that we are trying to qualify as an asset or a liability.

Now the reason, I'm giving the above analogy for, is to support what neo just said. It doesn't mean that just because we are spending some money for owning a house, it becomes an accountability.

Besides, when we talk about income, it is the “net” proceeds that matters more. Clearly having your own house increases net returns as it decreases expenditure compared to renting an apartment. Unless of course, you prefer to stay in the streets.

“Revenues and expenses” will always be part of any aspect of life, literally and figuratively. Unless of course we return to prehistoric times. When everything (I think) is neither an asset nor a liability.  :D

Or a liability! Try living during those times.
Title: Re: Do you consider a house as an asset or a liability?
Post by: mbd on Nov 27, 2008, 12:18 AM
di naman siguro sinasabi ni RK na magrent tayo for life... ang interpretation ko dito nung nabasa ko ang book nya eh... ok lng kung may sarili kang haus, money going  to my mortgage is always better than money going to someone else's mortgage... ang mahirap dun pagkinonsider mo na ang haus mo ay ang iyong biggest assest... dun ka in trouble kasi haus prices does always go up...tulad ng nakita natin sa US at south of england lately... maaring di natin masyadong maappreciate kasi iba nakasanayan natin... sa atin ang haus ay ibinibigay ke bunso at si bunso na ang makakasama ng mga elderly sa haus...sa western world kasi pagtanda mo ibbenta mo yung haus at yun ang biggest bulk ng pangnursing care mo...

para sa akin my haus is still a liability kasi may mortgage pa ako... cguro sa time na nagbenta na ako at nakagain ako kahit konti at nakalibreng tira ako ng ilang taon dun ko pa lang masasabi na assest cya.
Title: Re: Do you consider a house as an asset or a liability?
Post by: CondoInvestor on Nov 27, 2008, 01:21 AM
 :applause: :applause: :applause:

well said based on experience!
Title: Re: Do you consider a house as an asset or a liability?
Post by: voltes5 on Nov 27, 2008, 08:31 AM
I have an idea for a house to become an asset...Every end of the month pay yourself the rent due for living in your own home.
Title: Re: Do you consider a house as an asset or a liability?
Post by: just1362 on Nov 27, 2008, 01:02 PM
Either of the two. House may be considered as an asset because it is one of the basic necessities of every individual. However, this is not always the case. A house is either an asset or liability, as it will depend on certain circumstances.

We were also renting some place as our home before, but decided to have a house as our own, because we know that it is of our disadvantage to be paying something, which would never be our own. It is just like depositing money in a bank, which you will never get your money back. So, we purchased a house with the monthly amortization is within our means. We now owned the house, and maintaining the same is also within our capabilities. So, our house can be considered as an asset.

Now, we are considering selling our current house, as it could no longer serves its intended purpose and we intend to use the amount to construct a bigger house. Maliit lang kasi and there is no more room for expansion. But the problem is we do have a hard time disposing it. So, in this case, our house may be considered as liability and this also includes the lot where we intend to build our new house. Nakatiwang-wang na lang kase.

Another case is of an OFW whom I know. When this guy was still working abroad, he buys a beautiful house and lot. However, as we all know, the work of an OFW abroad is only temporary. And when the time for him to go home, he had no or little savings or investments, as most of his earnings went to his house. One of his problems now is on how to maintain the house. In this case, his house is considered as liability. I know, marami pong ganito sa atin na mga OFW.
Title: Re: Do you consider a house as an asset or a liability?
Post by: richpulubi on Nov 27, 2008, 03:51 PM
Title: Re: Do you consider a house as an asset or a liability?
Post by: workoshore on Nov 27, 2008, 05:04 PM
There were many cases wherein, an OFW, found him or herself capable of paying the monthly amort of a house & lot, secured a loan, yet when the house is already livable, it remains empty, nobody moves in, cause its either, its outside of MM and the household members are already accustomed to the life in the city or childrens are enrolled in schools...hence, it is a big liability & even will deteriorate as no one attending to it... :bahalaka:...
cheers... :cool2:
Title: Re: Do you consider a house as an asset or a liability?
Post by: zorah on Nov 27, 2008, 05:57 PM
How about building a duplex apartment instead of a house? you get paid through rent that will make your house an asset.
Title: Re: Do you consider a house as an asset or a liability?
Post by: wintan2006 on Nov 27, 2008, 07:12 PM
               I will consider my house here in Taiwan as an asset kasi fully paid na sya and i used to hold my classes here in my house so i got to save 30k pesos for the rental fee.
Title: Re: Do you consider a house as an asset or a liability?
Post by: CondoInvestor on Nov 27, 2008, 09:05 PM
wow, wintan2006 HOUSE indeed is an ASSET :applause:
Title: Re: Do you consider a house as an asset or a liability?
Post by: neo on Nov 27, 2008, 09:53 PM
Title: Re: Do you consider a house as an asset or a liability?
Post by: master on Nov 28, 2008, 07:28 AM
it looks like the title of the topic should be:
Do you consider YOUR house as an asset or a liability? instead of
Do you consider a house as an asset or a liability?

mine is an asset since the ownership was transferred to me, and i didnt spend a centavo to acquire it.
Title: Re: Do you consider a house as an asset or a liability?
Post by: jellyace on Nov 28, 2008, 09:06 AM
great answer master.

Title: Re: Do you consider a house as an asset or a liability?
Post by: wintan2006 on Nov 28, 2008, 10:04 AM
Title: Re: Do you consider a house as an asset or a liability?
Post by: pinoynetworker on Nov 28, 2008, 03:27 PM
Title: Re: Do you consider a house as an asset or a liability?
Post by: wintan2006 on Nov 28, 2008, 05:04 PM
             and just what ma'am mlangseth said,we can use that house to loan from a bank and that's what i did 5 yrs ago.i took a loan from a bank here in Taiwan with my hubby's house as collateral and we invested that money in a commercial bank that offered 9.75% locked in for 5 yrs.magmamature na sya and we will use the money we have earned in that TD to build my house in Pinas.
Title: Re: Do you consider a house as an asset or a liability?
Post by: zorah on Nov 28, 2008, 07:48 PM
nice post wintan. 

i remember one advice ni Steve Jobs of Apple sa mga new graduates yata... sabi nya if you can prolong living with your parents then do it... syempre nga naman the expenses in living separately may be avoided/delayed and money saved may be put into more productive use like savings and investments...

as for your friend na away ng away sa mortgage... liability nga yun... the stress alone could affect their health which would lead to more liability...  :D
 

Steve Jobs is right but in the Philippines we take care of our old parents so either you or one of your brother or sister should be living with your parent. To me i am the only son so i am living with them with my family right now. Although my wife and I still dream of having our own home.
Title: Re: Do you consider a house as an asset or a liability?
Post by: poorguy on Nov 29, 2008, 01:53 AM
Title: Re: Do you consider a house as an asset or a liability?
Post by: ryan21 on Nov 30, 2008, 02:26 PM
Title: Re: Do you consider a house as an asset or a liability?
Post by: workoshore on Nov 30, 2008, 04:15 PM
so, does this mean na yong mga nakatira under the bridges or in a rolling carts are better off than those with H/L, like the many few in this forum??...hhhmmm... :scratch:
cheers... :cool2:
Title: Re: Do you consider a house as an asset or a liability?
Post by: tops5450 on Dec 01, 2008, 08:37 AM
mukhang paligaw ligaw na ang discussion dito sa thread.

Ano po ba ang working definition of this two word? Is it right to consider an asset means anything that puts money in your pocket, and a liability takes out money from your pocket? If so, sa kabuuan naman house is an investment ika nga. In investing you win some, you loose some. Its up to us how to harness the potential of this kind of investment . cheers
Title: Re: Do you consider a house as an asset or a liability?
Post by: poorguy on Dec 01, 2008, 11:22 AM
case to case basis, it will be a good investment kung maganda ang location ng property mo like malapit sa office mo or business...convenient ika nga, or yung value ng lupa mo is continually growing dahil sa development ng area...

experience lang namin, kc we have a lot in a very cozy subdivision sa malinta, noon maganda ang location, tahimik, pero d naconsider yugn sa labas ng subdivision, napabayaan ng city gov't and lumiit ang kalsada, and naging heavy ang traffic, because of that, bumaba ang property value, and magiging mabenta lng ulit yun kung maayos ang road network, which is impossible sa pinas....

kung marami naman nakikinabang sa bahy, example, more than 3 people ang nakatira, and yung hindi ginagawang hotel( tulugan lang, na mas maraming oras ang nasa labas ng bahay compare sa loob),  i think it is a good investment....kung maliit alng naman ang pamilya i guess better to rent muna, hangang mkainvest ng property sa magandang lugar, para d sayang yung ininvest sa bahay....
Title: Re: Do you consider a house as an asset or a liability?
Post by: master on Dec 01, 2008, 02:35 PM

so, does this mean na yong mga nakatira under the bridges or in a rolling carts are better off than those with H/L, like the many few in this forum??...hhhmmm... :scratch:
cheers... :cool2:


Professional squatters? They look poor but they are actually rich.
Title: Re: Do you consider a house as an asset or a liability?
Post by: just1362 on Dec 01, 2008, 03:46 PM
Korek ka diyan master... when I was still working in a land surveying group, meron kaming sinurvey somewhere in QC, and I had a chance to see a squatter's house... wow... mas kumpleto ang gamit nila (appliances) as compared to myself. :eek:
Title: Re: Do you consider a house as an asset or a liability?
Post by: pinoynetworker on Dec 02, 2008, 02:31 AM


Professional squatters? They look poor but they are actually rich.


minsan nga kung sino pa yung liability sila pa yung nagkaka-asset... pabahay ng gobyerno... while those with regular jobs are eternally renting... minsan magra-rally pa at grabe mag-demand na bigyan sila ng pabahay ng gobyerno... tapos ibinebenta rin later... hayyy...


Title: Re: Do you consider a house as an asset or a liability?
Post by: SirZap on Dec 02, 2008, 06:21 PM
IMHO, I would say its both since "formal" Accounting/Finance definitions are different from Rich Dad definitions.

Accounting/Finance uses the formula

Asset = Liabilities + Equity (Capital/Ownership)

Meaning an Asset can have part liability and part ownership. So if you bought a house on loan, under a mortgage, the paid part is your ownership while the rest to paid up are your Liabilities.

Rich Dad defines an Asset as "anything that puts money into your pocket" *this has been posted several times by our members here*

Meaning, Rich Dad or Robert Kiyosaki only uses the word "Asset" in a different way. It does not mean that he intends to change or replace the meaning or usage of the word, He only wants to simplify our way of classifying the things we are spending and investing on.

If we try to use the Rich Dad "Asset" as a formal definition there would be lots of confusion hence the posts of some of PMT members views. I would like to emphasize that I'm an accounting graduate and I use the first definition. Rich Dad definition would be a horrific violation of our standards but then if we are to see it from different perspectives the more we can appreciate the reasons why we classify a house as an Asset or not.

*rock on*  :rakenrol:
Title: Re: Do you consider a house as an asset or a liability?
Post by: pusa on Dec 03, 2008, 05:37 AM
mukhang nagpapakitang gilas si batman sa pag google ah  :rakenrol:
Title: Re: Do you consider a house as an asset or a liability?
Post by: SirZap on Dec 03, 2008, 01:30 PM
wow! a BAT vs. a CAT  :applause:

IMHO... John T. Reeds has only a few correct points but the rest are simply missing the point...
Title: Re: Do you consider a house as an asset or a liability?
Post by: poorguy on Dec 03, 2008, 10:37 PM
professional squatters, tuwing may sunog dun mo makikita yung laman ng lunga nila....ako nga nakakita pa ng aircon eh... hanep, sabagay, libre lahat, tax,electricity, tubig.... sa pagkain lang ang gastos nila.
dati isang tauhan namin nakabili pa sya ng lupa sa tabi ng riles ng tren, i dont know kung paano or kung kanino nya nabili yun, napakinabangan lang yung pagmamayari ng iba,
Title: Re: Do you consider a house as an asset or a liability?
Post by: reygars on Dec 04, 2008, 12:44 AM
house is an asset...your house is your sanctuary a shelter for your family...and if properly maintained you can re-sale it double the original price...otherwise pa rentahan mo kung ayaw mong tirahan,kikita ka pa rin-pwedi mo ring e sangla sa bank if need mo cash. :cool2:
Title: Re: Do you consider a house as an asset or a liability?
Post by: SirZap on Dec 04, 2008, 02:41 AM
Title: Re: Do you consider a house as an asset or a liability?
Post by: Ageo on Dec 04, 2008, 04:32 AM
asset  :harhar:
Title: Re: Do you consider a house as an asset or a liability?
Post by: poorguy on Dec 04, 2008, 10:05 PM
like i said, case to case basis para maconsider ang bahay as asset or liability

@regars
agree ako sa point mo na it can double the value, pero not only on how you maintanin your house, but very important yung location, but sometimes kapag makapili k na ng magandang location, parang hirap din ito ibenta db =]

asset sya kung marami ang titira sa bahay mo, rather than 2-3 lang kayo tapos magiging hotel nalang ang bahay nyo, kc mas marami ang oras mo sa labas ng bahay kesa sa loob.... ( like work ka 8 hrs, pero need to leave the house 1 and half hour early kc traffic, tapos another 1 hr para makauwi, then matutulog nalang dahil pagod sa work or school.... minsan ot pa =]....example lang naman) asset sya kc sa time ngyon i dont know if the rent are going up, and asset sya kung sakali ang landlord eh magtatake advantage sayo to increase your rent every year... this is bad..=[

@sirzap
oo sir, d ko kaya bitiwan ang issue sa mga squatter =] hehehe nakakainis na nakakaawa eh =[... well gaya sabi ng professor ko sa coleege, they are part of the system sa pinas.. politics, security, etc etc...
Title: Re: Do you consider a house as an asset or a liability?
Post by: workoshore on Dec 04, 2008, 11:11 PM
yes, member din sila ng alta socialidad...pero there are two kinds of them, a legit & pros...

and in both of them, the house is an asset straightforward...

and there will be no end to the housing backlog in the Philippines...teka somewhere I read na plan niya magtayo ng charitable institution... :scratch:

cheers... :cool2:
Title: Re: Do you consider a house as an asset or a liability?
Post by: poorguy on Dec 05, 2008, 03:17 PM
ok guys, eto kakabasa ko lang sa website ng inquirer, lumulubog daw ang manila =].... do you think kung d magawan ng paraan ng "ever-carring" government natin para maiwasan ito, eh pwede tumaas ang value ng lupa sa manila?... another reason na important owning a property can be a liability kung magkaroon ng ganitong situation... pero kung maging venice ang pinas, baka naman tumaas pa  :D

reason bakit lumulubog ang manila, kc daw nasobrahan na sa pagde-deepwell...commercial use and i think yung squatting natin ulit ...sirzap, cant get enough padin sa squatting... kc meron effect eh, damay tayo lahat, gustuhin man natin o hindi, damay lang tayo sa kamalian ng iba...
Title: Re: Do you consider a house as an asset or a liability?
Post by: SirZap on Dec 05, 2008, 04:12 PM
so if squatting is prevalent therefore I could say that in your view a house is a Liability  :watchuthink:
Title: Re: Do you consider a house as an asset or a liability?
Post by: Joli on Dec 05, 2008, 06:46 PM
Its depend how you manage your house finances.
Can be consider both asset or liability one a time.
The most volume in population, their house serve as liability.
Title: Re: Do you consider a house as an asset or a liability?
Post by: poorguy on Dec 05, 2008, 06:58 PM
sirzap

i said case to case basis po =].... dami reason why it can be asset and dami rin reason why it can be a liability....

better location ng property(convenience, accessible, growth in value, income come in because sa paupa mo, consistent unreasonable na pagtaas ng rent ng landlord mo, more than 3 person stay sa house/or simply d nagigign tulugan lang ==== i consider it as an asset...opinion ko lang to

other than this reason liability na....

 :D
Title: Re: Do you consider a house as an asset or a liability?
Post by: SirZap on Dec 06, 2008, 03:31 AM
ok! i'm just trying to connect squatting with the topic....  :thankyou:
baka kasi magmukhang squatter yung posts mo  :hihi:
Title: Re: Do you consider a house as an asset or a liability?
Post by: kalakal on Dec 06, 2008, 10:09 AM
Nasabi lang ni kiyosaki yon kasi mahal ang bahay at lupa sa states, lalo na yung mortgage.

Sa atin kasi estate tax kada taon lang ang binabayaran.
Title: Re: Do you consider a house as an asset or a liability?
Post by: Amberthe on Dec 06, 2008, 07:16 PM

For me both, as an asset because it will be there for a lifetime or more. On the other hand, a liability too esp if you are abroad and nobody is occupying it.
Title: Re: Do you consider a house as an asset or a liability?
Post by: Jazon on Dec 07, 2008, 11:27 AM
For me it's a liability... but it's better than not having a house to live in! Shelter is a basic necessity.
Title: Re: Do you consider a house as an asset or a liability?
Post by: poorguy on Dec 07, 2008, 05:20 PM

ok! i'm just trying to connect squatting with the topic....  :thankyou:
baka kasi magmukhang squatter yung posts mo  :hihi:


thats nice of you sir to be concern on my post...maybe u need to check yours aswell =] may reason naman ako to support my post  :D

peace, opinion ko lang to sir, like what the forum is all about, posting different opinions... what about you sir, how is the house be an asset or a liability, naging curious tuloy ako sa opinion mo, to be checking on my post na baka maging "squatting" post  
Title: Re: Do you consider a house as an asset or a liability?
Post by: SirZap on Dec 08, 2008, 12:13 AM
nagpapatawa lang po ako... paki-backread lang po ang post ko about my answer  on House being an Asset and/or Liability  :yoohoo:
Title: Re: Do you consider a house as an asset or a liability?
Post by: poorguy on Dec 08, 2008, 10:40 AM

nagpapatawa lang po ako... paki-backread lang po ang post ko about my answer  on House being an Asset and/or Liability  :yoohoo:


i see, naisip ko kc kung baka nakasagasa ako kaya ganyang ang nareply mo sa post ko, iba lang cgro yung humor mo sa humor ko sir,


Posted on: Dec 08, 2008, 10:37 AM
accountant k pala sirzap... makes sense   :D
Title: Re: Do you consider a house as an asset or a liability?
Post by: workoshore on Dec 08, 2008, 03:35 PM
hayyyy...salamat, all is well that ends well....relax lang kasi pg...

ako basta, asset ang aking box type na bahay.... :hihi:..hmmmm.... :bahalaka:
cheers... :cool2:
Title: Re: Do you consider a house as an asset or a liability?
Post by: squatt3r on Dec 08, 2008, 04:44 PM
asset po
Title: Re: Do you consider a house as an asset or a liability?
Post by: poorguy on Dec 09, 2008, 08:24 AM
hehe oo nga need to calm myself down din talaga... salamat sa paalaala basta cool lang naman ako eh, minsan kc may mga hirit na wala sa lugar, ako naman nareremind to keep my cool, kaya mali ko din,  :D

kaya pasensya ulit sirzap c.p.a.   and salamat kapatid na workoshore, malamang ginto ang pako na ginamit sa bahay mo kaya asset sya hahaha  :cool2:
Title: Re: Do you consider a house as an asset or a liability?
Post by: leela on Dec 09, 2008, 08:31 AM
sana may makatulong...right now, hindi alam ni hubby kung asset or liability yung iniwang bahay ng departed mom niya.

his mom kasi specifically wanted their house to be inherited by the male children. my hubby's brother is american citizen na, resides in the US, and is not really interested to get the property.

although their dad is still alive, they are just thinking of the best way to get the property. we heard kasi na mahal ang inheritance tax. ang advise naman ng iba is to "sell" the property to my husband and then my husband will just pay the capital gains tax. what's the best way kaya for this?
Title: Re: Do you consider a house as an asset or a liability?
Post by: poorguy on Dec 09, 2008, 08:37 AM
@leela

if you guys will not be needing the house, baka better na yung irent, kesa ibenta, para regular ang pagdating ng income....and an inheritance is like a remembrance of the person na nagbigay, just my opinion, atleast u inyo padin yung property, and never know baka kailanganin nyo din yung bahay in the future,
Title: Re: Do you consider a house as an asset or a liability?
Post by: cinaj05 on Dec 09, 2008, 06:05 PM
Title: Re: Do you consider a house as an asset or a liability?
Post by: princesssopoor on Dec 10, 2008, 05:01 AM
For me it's an asset. Sabi nga ni Arkad: Therefore, do I recommend that every man own the roof that sheltereth him and his. Because this will be your legacy to your family.

Pero yung family house namin eh liability cxa kc nakatayo cxa sa dalawang lot. Half eh sa lot namin at yung half eh sa kapitbahay. :(
Title: Re: Do you consider a house as an asset or a liability?
Post by: nevenash on Dec 10, 2008, 09:09 AM
Whew! I never thought this thread will come this far. Anyway, thank you to all who have shared. Thank you for keeping this thread alive. And thank you for those who will continue to post. Its been so long since the last time I checked at this.

I wanted to share my personal experience about this. I grew up in the humble province of Palawan and it was way back on my grade school when my parents decided to buy a house. Its not fully paid, so there's a mortgage that they needed to pay every month. And I saw how it really burdened them. Now, I don't want to share the dramas and all stuff like that. So I want to tell you the learning that I got. The problem started when my mom lost her job and really struggled to pay the mortgage, taxes, etc... So up until now, around 20 years, she keeps on paying for it. I say that its really critical to have passive income to offset the expenses that occur on any liability.

That's why for me, a house is an asset if you own it and have it rented and a liability if you settle on it. But I'm not saying its bad to own a house and live in it. What's bad is if you rely only on your earned income to pay for it. Like what other people said in this thread, "it depends on your capability to pay for it." In my moms case, when she lost her job, she also lost her capability to pay.

If you have enough passive income to pay for your expenses, life will be better for you and your family.

Peace and Plenty!
Title: Re: Do you consider a house as an asset or a liability?
Post by: workoshore on Dec 10, 2008, 02:41 PM
^sa case ng parents mo, burden siya hindi liability, pero dahil sa ibang circumstance na dumating sa buhay ninyo...yet I believe na it was a prudent decision at that time dahil mahirap alang matirhan na tatawagin mong my home, especially kids growing...kaya dito pumapasok yong long term financing, para maging magaan ang pagbabayd at di nito kukunin lahat kita mo sa isang buwan, yon nga lang kung deep thinker ka, manghihinayang ka kasi halos double/triple ang price kapag long term ang pagbabayad...

most in-house financing and even yong sa Pag-Ibig, they ask you to list your expenses & income, tapos tingnan nila kung yong amort ay di lalampas ng 30% (correct me if I'm wrong), para siguradong di ito makakaapekto negatively sa pamumuhay mo....yon nga lang, pag nakausap mo ay isang agent na alang pakialam sa buhay mo kundi sa kanyang magiging komisyon lang, eh ala na... :watchuthink:
but then again, these are necessities in life...Food, Shelter & Clothing... :book:
cheers... :cool2:
Title: Re: Do you consider a house as an asset or a liability?
Post by: poorguy on Dec 10, 2008, 03:02 PM
agree ako sa ibang part na nasabi mo sir workoshore, mahirap nga masabi na "home sweet home" ang bahay na uupahan mo, and longterm plan nga yung pagbili ng sariling property, kaya parang ang dating nung pagloan or mortgage eh (rent-to-own) ...

i experience my parents loan money sa bank to purchase our property, and it was never easy to repay the debt, minsan interest alng ang nababayaran namin, but like i said before as long as nasa magandang location ang napurchase mong property, it can be an asset.... noon ang value ng lupa namin umakyat from 1k sqm to 4-5k /sqm....ngyon it depreciate ulit, kc naging crowded yung lugar, and unti unti nang nagsosolo ang siblings ko when they all got married, so natira sa bahay is 4 people occupying 1,700sqm na property, laking nasayang, time and money...

tama din sabi ni nevenash as long as may passive income ka, and kaya mo mabayaran ang mortgage/loan para sa property mo, plus you still continue to put money sa ibang savings or investments mo i think its ok to own a house,

lastly i am not against in owning a house, thats everybody's dream, including mine....pero we need to be prepared first before you plan to get one for yourself, or for your family

 :cool2:
Title: Re: Do you consider a house as an asset or a liability?
Post by: Amberthe on Dec 10, 2008, 08:58 PM

For me a liability as of now, coz I need more capital for some of our investments. So if you put all your money in building a nice house- its a liability. "Build your dream house later!" according to experts. :)  
Title: Re: Do you consider a house as an asset or a liability?
Post by: workoshore on Dec 10, 2008, 10:26 PM
Title: Re: Do you consider a house as an asset or a liability?
Post by: tops5450 on Dec 11, 2008, 12:19 AM
In my own experience leela I opted to take the latter "sell" when that situation occurs to me mas mura ang tax na babayaran at if ever na may ibang tao/party na hahabol sa property mas may laban ka. hope helps.
Title: Re: Do you consider a house as an asset or a liability?
Post by: Bp22estafa on Dec 11, 2008, 01:14 PM
question: in whose name is the Transfer of Certificate title right now?

Kung nasa dad na ng hubby mo, you just need to secure a deed of sale from his dad selling the property to your hubby. also make sure na walang maghabol na ibang heirs w/in the period of 2 years after the transfer. you should get away from the inheritance tax w/ this.

kung hindi niyo mapapakinabangan ang house. it would definitely be a liability since you still have to pay the yearly realty tax. but since imamana niyo lang yan sa biyenan mo at bir taxes & transfer fees lang babayaran niyo to own the property, i'll consider it an asset. if you are not planning to use the house, have it rented out to earn passive income. ito po'y suggestion lang naman  :cool2:


sana may makatulong...right now, hindi alam ni hubby kung asset or liability yung iniwang bahay ng departed mom niya.

his mom kasi specifically wanted their house to be inherited by the male children. my hubby's brother is american citizen na, resides in the US, and is not really interested to get the property.

although their dad is still alive, they are just thinking of the best way to get the property. we heard kasi na mahal ang inheritance tax. ang advise naman ng iba is to "sell" the property to my husband and then my husband will just pay the capital gains tax. what's the best way kaya for this?

Posted on: Dec 11, 2008, 12:57 PM
why not have it subdivided. keep the area you need & sell the rest of the property? then gamitin mo yung money for investments that can earn you passive income. a liability shouldn't always be a liability if there's a way out. since sabi mo crowded na rin yung place, more or less you already have the market to put it on sale.


agree ako sa ibang part na nasabi mo sir workoshore, mahirap nga masabi na "home sweet home" ang bahay na uupahan mo, and longterm plan nga yung pagbili ng sariling property, kaya parang ang dating nung pagloan or mortgage eh (rent-to-own) ...

i experience my parents loan money sa bank to purchase our property, and it was never easy to repay the debt, minsan interest alng ang nababayaran namin, but like i said before as long as nasa magandang location ang napurchase mong property, it can be an asset.... noon ang value ng lupa namin umakyat from 1k sqm to 4-5k /sqm....ngyon it depreciate ulit, kc naging crowded yung lugar, and unti unti nang nagsosolo ang siblings ko when they all got married, so natira sa bahay is 4 people occupying 1,700sqm na property, laking nasayang, time and money...

tama din sabi ni nevenash as long as may passive income ka, and kaya mo mabayaran ang mortgage/loan para sa property mo, plus you still continue to put money sa ibang savings or investments mo i think its ok to own a house,

lastly i am not against in owning a house, thats everybody's dream, including mine....pero we need to be prepared first before you plan to get one for yourself, or for your family

 :cool2:
Title: Re: Do you consider a house as an asset or a liability?
Post by: poorguy on Dec 11, 2008, 01:37 PM
Title: Re: Do you consider a house as an asset or a liability?
Post by: leela on Dec 11, 2008, 01:49 PM
Quote
In my own experience leela I opted to take the latter "sell" when that situation occurs to me mas mura ang tax na babayaran at if ever na may ibang tao/party na hahabol sa property mas may laban ka. hope helps.

yan din ang sinuggest ng dad ko ke hubby, na "ibenta" na lang.

Quote
question: in whose name is the Transfer of Certificate title right now?

Kung nasa dad na ng hubby mo, you just need to secure a deed of sale from his dad selling the property to your hubby. also make sure na walang maghabol na ibang heirs w/in the period of 2 years after the transfer. you should get away from the inheritance tax w/ this.

kung hindi niyo mapapakinabangan ang house. it would definitely be a liability since you still have to pay the yearly realty tax. but since imamana niyo lang yan sa biyenan mo at bir taxes & transfer fees lang babayaran niyo to own the property, i'll consider it an asset. if you are not planning to use the house, have it rented out to earn passive income. ito po'y suggestion lang naman .


bp22, i think the deed is in my father-in-law's name. curious ako sa post mo na "also make sure na walang maghabol na ibang heirs w/in the period of 2 years after the transfer. you should get away from the inheritance tax w/ this."

ano yung rule dito? if may maghabol, ibig sabihin magbabayad si hubby ng inheritance tax?

thanks sa mga sumagot!
Title: Re: Do you consider a house as an asset or a liability?
Post by: ishi0506 on Dec 11, 2008, 04:38 PM
a house is a liability kasi puro gastos ka for taxes, improvements, insurance, etc etc.
Title: Re: Do you consider a house as an asset or a liability?
Post by: Bp22estafa on Dec 16, 2008, 02:50 AM
if you can afford it & it's on a good location it will be an asset. if you can't afford it, well it can become a liability.
Title: Re: Do you consider a house as an asset or a liability?
Post by: DARK.KNIGHT on Dec 16, 2008, 03:55 AM
Thank goodness...pinapatira pa ako ng NANAY ko sa bahay niya. :hihi:
Title: Re: Do you consider a house as an asset or a liability?
Post by: SirZap on Dec 19, 2008, 11:17 PM


yan din ang sinuggest ng dad ko ke hubby, na "ibenta" na lang.



bp22, i think the deed is in my father-in-law's name. curious ako sa post mo na "also make sure na walang maghabol na ibang heirs w/in the period of 2 years after the transfer. you should get away from the inheritance tax w/ this."

ano yung rule dito? if may maghabol, ibig sabihin magbabayad si hubby ng inheritance tax?

thanks sa mga sumagot!



Leela, I have read your previous post kaso sinagot na nga ni bp22 in a more simpler manner...  
kaya nya sinasabi yung maghahabol na heirs because meron entitled  sa kanila
below would be the  somewhat complicated answer to your first post, this is what should happen if bp22's answer is not an option

====================================

medyo complicated ang sagot kasi i-qualify mo muna:

A. Citizenship of their deceased mom, US or Filipino?
B. If there was a last will and testament.

So there would be 4 main combinations:

a. US with last will and testament.
b. US without last will and testament.
c. Filipino with last will and testament.
d. Filipino without last will and testament.

Why do we need to establish her citizenship? Because in US laws when there is a last will and testament anyone stipulated as heir(s) shall receive the inheritance even if its her cat or dog, refer to (a). If there are no  "last will and testament", regardless of citizenship then by default the Civil Code of her country takes effect, refer to (b) and (d) . If she is Filipino, refer (c) and (d), she can not disinherit your husband's sisters because in our laws disinheritance can not be effective even if its declared in the last will and testament - there should be a legal basis such as dishonor, certain criminal acts etc.

If (a) then simply follow what it is written there, pay the tax if necessary - with your brother-in-law he has to unless he does not accept the inheritance which he did then the house should be distributed among the husband and the other children,  ergo the US citizen brother will not inherit anything so does paying any taxes.
If (b) then follow US laws.
If (c) and (d) then the sequence of distribution goes like this:

1st. Since her husband is alive there is still conjugal properties ownership. Which means only the half, her share, can only be given as inheritance. The other half should remain with her husband.
2nd. The the half of the wife's portion shall be shall be divided among the children. which leaves another half.
3rd. So the other half shall be divided again. The first part shall be for the husband equal to the size what each children got from the other half. Which now leaves the remaining portion.
4th The remaining portion shall only be be the disposable portion and thus subject to the last will and testament, if there is one. If none then that portion shall be divided  equally among the children plus the husband .

Secnario 1:
So if we are to assume that your Mother-in-Law is Filipina, has no last will and testament, and the only inheritance that she left is the house plus the Son has in effect not interested then they can simply do steps 2nd to 4th with one less children as heir.

Secnario 2:
Your Mother-in-Law is Filipina, has last will and testament specifically stating "their house to be inherited by the male children", and the inheritance that she left is the house and money plus the Son has in effect not interested with the house.

They must assess the prevailing market value of the house and add it on the money. Do steps 2nd to 4th. If the remaining portion of the 4th step is equal or more than the value of the house then it can be given to the Sons only as she has willed it. following that assumption since the US brother is not interested then it would be your husband shall receive it.
Title: Re: Do you consider a house as an asset or a liability?
Post by: Bp22estafa on Dec 21, 2008, 11:55 AM
leela, it would be best to consult a lawyer so that all legal matters can be explained to you & taken care of. to answer your question, if you  transfer the ownership of the property by securing a deed of sale from your father-in-law to your husband, you are also entitled 1/2 ownership of it.

given that no other heirs, namely your brother-in-law, his wife & children, sisters-in-law, her children if there's any make any claim in a judicial court for their ownership right as heirs to the property. wala kang magiging problema. what you don't want is one of the heirs suddenly took interest with their rightful share, filed a case against it & eventually won the case. the court has the right to declare the sale null & void, Have the property distributed legally to the rightful heirs, which would require your husband's family to pay for the inheritance tax since the death of your mother-in-law would have been established at this time.

aside from the complications of the matter at hand. civil & criminal case might be slapped to your father-in-law & your husband, if the court finds any fraudulent act on the sale of the property or any sign of collaboration to disregard the other heirs.

again, it's better to consult a lawyer with this
Title: Re: Do you consider a house as an asset or a liability?
Post by: SirZap on Dec 21, 2008, 07:09 PM
Title: Re: Do you consider a house as an asset or a liability?
Post by: reygars on Dec 25, 2008, 11:25 PM
asset talaga kasi if it is a liability, wala na sanang nag tayo ng bahay...he.he.he. :cool2:
Title: Re: Do you consider a house as an asset or a liability?
Post by: tyronesolee on Jan 06, 2009, 11:04 AM
I have blogged about the topic according to the principles of Kiyosaki. Interestingly, I have readers who provided great comments and somehow I believe that they have argued pretty well and that they proved that not all teachings of Kiyosaki are correct. I guess they are accountants.  :watchuthink:

http://www.millionaireacts.com/517/house-asset-or-liability.html
Title: Re: Do you consider a house as an asset or a liability?
Post by: leela on Jan 06, 2009, 12:15 PM
thanks sa mga nagbigay ng insights. hypothetical lang na si hubby ang kukuha, ah, para lang mas maintindihan ko. so far, hindi na nila uli pinag-uusapan yung sa house ng parents nila. to be honest, hindi din kasi interesado si hubby to own the property, eh. ang habilin lang kasi ng nanay niya before mamatay is that sa lalaking anak mapunta yung bahay.
Title: Re: Do you consider a house as an asset or a liability?
Post by: nevenash on Jan 06, 2009, 03:33 PM
I challenge you guys to play the Cashflow 101 of Robert Kiyosaki. By then, you can have a better understanding about this topic.

For those interested to have an experience Re Robert Kiyosaki's Cashflow 101
You can visit this site to reserve seats and inquiries.
http://ca2020.ning.com/forum/topics/sure-seats-for-the-cashflow
Title: Re: Do you consider a house as an asset or a liability?
Post by: deveerei on Aug 06, 2009, 09:54 PM

I think that a house can only be asset if it is 2 or more...
but then why is a tv set only one?...
a liability depends on a person...
if he/she can lie then he/she has a liability
Title: Re: Do you consider a house as an asset or a liability?
Post by: Langerhans on Aug 07, 2009, 12:23 AM

Right now, for me house is a liability especially if you built a house but you are not living in it because of some circumstances.  
Title: Re: Do you consider a house as an asset or a liability?
Post by: puberer on Aug 07, 2009, 07:14 AM
i consider it as an asset.  

it becomes a liability when you're in debt because of your house.   :cool2:


Title: Re: Do you consider a house as an asset or a liability?
Post by: dinaren on Aug 07, 2009, 09:35 AM
if its fully paid and is not used as a collateral it is definitely an asset regardless of the circumstances.
Title: Re: Do you consider a house as an asset or a liability?
Post by: wintan2006 on Aug 07, 2009, 10:51 AM
                My house is an asset because it is fully paid and i have used it as collateral for leveraging(with 2% interest loan per annum here in taiwan) and invested the money which gave me 9.75% interest 5 yrs locked in in metrobank philippines(that was 5 yrs ago) and i am still practicing it now.

                My house is an asset because i work in my house and i don't have to pay the rent that is supposed to cost me 26k in pesos.
Title: Re: Do you consider a house as an asset or a liability?
Post by: thisistheday on Aug 07, 2009, 09:50 PM

I have blogged about the topic according to the principles of Kiyosaki. Interestingly, I have readers who provided great comments and somehow I believe that they have argued pretty well and that they proved that not all teachings of Kiyosaki are correct. I guess they are accountants.  :watchuthink:

http://www.millionaireacts.com/517/house-asset-or-liability.html


if you think the house is a liability, try bookkeeping and see if you will make sense.
Title: Re: Do you consider a house as an asset or a liability?
Post by: tops5450 on Aug 07, 2009, 11:28 PM
Para ma-quantify natin if a house is an asset or liability dapat may operational meaning tayo na dapat pagkasunduan between these two words :watchuthink:
Title: Re: Do you consider a house as an asset or a liability?
Post by: marcopolo on Aug 08, 2009, 01:59 AM
Title: Re: Do you consider a house as an asset or a liability?
Post by: nightwatch on Aug 08, 2009, 05:33 AM
How will we classify the place where we stay or do business in terms of asset or liability?  Try ko satisfy yung accounting and RK definition at the same time.

For me, if you don't own a house, you'll probably be incurring rent expense so money comes out of your pocket and goes to your landlord.  If you're paying the mortgage to your house, money still comes out of your pocket and I would consider this as still incurring 'rent expense', only this time rent expense goes to the bank and we call it mortgage expense. However, if you already finished the mortgage, I would say money comes out of your right pocket as rent expense and goes to your left pocket as rental income.  In this case, sa accounting this is still considered an asset but on RK's definition ano kaya?  

Now, let's have it this way:

If you really want to see real cash flowing to your bank account, you could probably opt to have your already owned house rented and transfer to a location or buy another house with lower rent or mortgage than the rental income you are receiving.  The difference between your rental income and rent or mortgage expense is your passive income.  So, I think I just made my house an asset based on accounting's and RK's definition. :watchuthink:
Title: Re: Do you consider a house as an asset or a liability?
Post by: wintan2006 on Aug 08, 2009, 11:31 AM
         ^tama,just like a friend of mine,she used to live in her own apartment then she decided to move to another city where she rents an apartment that costs her 22k,she rented out her own apartment for 40k,malaki kasi yung apartment nya eh kaunti lang naman sila.so she gets to have a passive income of 18k a month.
Title: Re: Do you consider a house as an asset or a liability?
Post by: puberer on Sep 09, 2009, 09:33 PM
after i read the book rich dad poor dad, i consider a house a liability.  pero minsan i consider it as an asset kasi may sarili kang bahay at hindi nag re-rent.  



Title: Re: Do you consider a house as an asset or a liability?
Post by: DonT on Sep 10, 2009, 12:24 AM
I'm not an accountant..pero as per standard accounting practice....houses are assests which will be listed in a entities (person or company) financial statement (in this case it would be the balance sheet).   :D
Title: Re: Do you consider a house as an asset or a liability?
Post by: dantel on Sep 10, 2009, 03:25 PM
I read the book of RK, for him it is a liability, but for me it is an asset, because it belongs to our six basic needs. Kung di ka tayo mag build up ng bahay e papaano naman tayo, at ang pamilya natin.
Title: Re: Do you consider a house as an asset or a liability?
Post by: tangkad22 on Sep 11, 2009, 01:25 AM
Title: Re: Do you consider a house as an asset or a liability?
Post by: dantel on Sep 12, 2009, 05:50 PM
Per RK asset means bringing money to your pocket, liability means bringing out money from your pocket, the way i understand house become liability provided its only plain residential without any business attach to it, due to its maintenance cost, house become investment if you build up with a main purpose, for ex. for rental. Just my humble opinion.
Title: Re: Do you consider a house as an asset or a liability?
Post by: mlangseth on Sep 12, 2009, 09:17 PM
here is my answer (again)..


http://www.consumerismcommentary.com/2009/02/16/is-your-home-an-asset-or-liability/
Title: Re: Do you consider a house as an asset or a liability?
Post by: Procurement on Apr 12, 2010, 03:04 AM
My HOUSE is an ASSET = This is the place where I conceived my dreams and plans that was converted to "exponential" growth of my Net Worth. :idea:
Title: Re: Do you consider a house as an asset or a liability?
Post by: puzzlebox on Apr 12, 2010, 07:51 AM
I believe:

house = liability..

ang isipin nyo na lang:

no house = more liability.. hehhehe
Title: Re: Do you consider a house as an asset or a liability?
Post by: jeff on May 06, 2010, 12:27 PM
I have read several kyosaki's books and I believe in most of his principles but I believe owning a HOME is a very big asset in itself even though if we quantify it as a material asset or something else. Kyosaki have based his claims in the american way of living where everything is quantifiable, materially. We have to consider each and everyone's economic structure. Most of the foreigners living in manila can attest to the claim that the standard of living here in manila is a lot tolerable than else where. owning a HOUSE here is also owning A HOME. Once a family dreams of owning a home , he knows he got it made and everything else follows because they have that confidence to move forward. Again, it is the same as owning a vehicle, this are needs and these needs are vital to one's suiccess, which includes the wants. Now, tell me, if you are doing business with a another businessman and you want to get a sale, would you want him to see that you are driving a second hand car? We all know impression makes it all perfect. Do you know that a HOUSE can make or break a person? Thus, a HOUSE and A HOME is a vital asset to one's living. OK, let us do the math. if an average family has to amortize a 6 million house for 20 years is about P300,000.00/year and about 25,000. per month. let us say the amt. is all inclusive of interests for discussion sake. It is like already renting an apartment forever! Now, you will say that the maintenance will eat you up , No, actually it will come out lower than your monthly rent.Thus, saving you more money in the future and make use of the money saved for your kids education. Having that confidence of owning a house makes all the difference. We also have to consider the reality of everyday expenditures, there are a lot of emergencies and financial surprise, a home can be a colateral for something we need. In America, it's different. Thus, owning a HOUSE and A HOME is a vital asset for one's well being.
Posted on: May 06, 2010, 11:13:43 AM

My HOUSE is an ASSET = This is the place where I conceived my dreams and plans that was converted to "exponential" growth of my Net Worth. :idea:


that is correct.
Posted on: May 06, 2010, 11:18:45 AM

Per RK asset means bringing money to your pocket, liability means bringing out money from your pocket, the way i understand house become liability provided its only plain residential without any business attach to it, due to its maintenance cost, house become investment if you build up with a main purpose, for ex. for rental. Just my humble opinion.



In reality, our economic structure dictates that we need to save and it is impossible for ordinary filipinos to save if we keep on paying rent. So, we need to put a stop gap plan to minimize spending. In America, where Kyosaki have based his model, today are thinking in a different way. If we keep on paying rent , it is like paying a never ending interest on our credit card and that is why america fell into that trap of being bankrupt because everything is based on never ending credit. Realty in america have dropped down so badly that they can't even sell their houses and almost everyone paying rent can't seem to keep up with the payments. In the philippines, our homes have saved us from that melt down, instead of making our landlords make more money, we actually have saved more money by owning a home and have diverted that savings to a more lucrative and productive endeavor such as owning a small business.
Title: Re: Do you consider a house as an asset or a liability?
Post by: DonT on May 06, 2010, 12:55 PM
A decent house, big enough for all your needs and small enough to leave you some money in the bank is what we should call and asset.

It becomes a liability if it is more than what is necessary.
A 400 sqm House for me is a liability...since I cannot afford one...without skipping my meals.
But for Manny Pacquio, its an asset, since he can afford to have one. and still have tons of dough for other things.

People are easily tempted to buy/ build big and spacious houses..but one should also consider the cost of owning one.
Cost of owning one = Upkeep + Taxes + Rent (if you have to rent it out)
Knowing the Cost above, would you still opt to have a big house or would prefer a small townhouse or condo.  :D
Title: Re: Do you consider a house as an asset or a liability?
Post by: rds on May 06, 2010, 06:05 PM
If anyone here considers his/her house a liability, then clear your self with this liability and give your house to me. I would be very happy help you with this liability...
Title: Re: Do you consider a house as an asset or a liability?
Post by: freefront on Jun 08, 2010, 10:30 PM
Liability.
Title: Re: Do you consider a house as an asset or a liability?
Post by: Jsanvict on Jun 08, 2010, 10:53 PM
Definitely an asset. In fact, it's a must have asset. Your house has an equivalent cash value and you can even use it as a collateral on loans.

Though you spend money on it, at least it is your house. Spending money on a house that you are just renting is more costly and not practical.

Title: Re: Do you consider a house as an asset or a liability?
Post by: bauer on Jun 08, 2010, 10:59 PM
liability this time
Title: Re: Do you consider a house as an asset or a liability?
Post by: airam on Jun 09, 2010, 01:42 AM
I don't have a house yet and I consider it an asset if I will owe one.
Title: Re: Do you consider a house as an asset or a liability?
Post by: freefront on Jun 10, 2010, 12:27 AM
Yeah. It also houses 3 dogs that need dogfood, dog shampoo that costs much more than my shampoo, puts me 2,350 bucks in vaccines annually, respond to the call"who are babies!!!" and I then waste 30 minutes spoiling them.
Houses need lots of stuff and attention. Taxes are the least of your worries.

 
Title: Re: Do you consider a house as an asset or a liability?
Post by: gigabytes on Jun 10, 2010, 08:36 PM
Can be both - an asset and a liability.

Asset since it can increase in value specifically if it's in a subdivision.

Liability if you are spending more on it than your savings for your retirement thru maintenance etc.
Title: Re: Do you consider a house as an asset or a liability?
Post by: malinkelly on Jun 11, 2010, 04:05 PM

that is what everyone thinks. That's what I think of also before I read the book of Robert Kiyosake the Rich Dad Poor Dad. But then after reading the book i realized that no its not an asset but as a liability since it doesn't give as an income but just create more expenses t. So it cannot be considered an asset.  


so, assets are those that we have help us to earn money?
Title: Re: Do you consider a house as an asset or a liability?
Post by: bauer on Jun 11, 2010, 05:30 PM
YES, assets generates INCOME while Liabilities generates expenses only for the pleasure of the buyer
Title: Re: Do you consider a house as an asset or a liability?
Post by: aceplayerjon on Jun 30, 2010, 11:03 PM
HOUSE are liabilities. LOTS are asset.
Title: Re: Do you consider a house as an asset or a liability?
Post by: freefront on Jul 02, 2010, 06:18 PM
Strictly speaking, anything that takes out money from your pocket is a liability. Something that puts money in your pocket is an asset. Kaya sa mga kumukuha ng mortgage loan, 4 door na apartment, 3 yung tagabayad ng loan, yung 1, income. and repeat.
Title: Re: Do you consider a house as an asset or a liability?
Post by: angel07 on Jul 03, 2010, 06:46 AM
Its kind of both. Just the point of view you look at it changes its significance.
Title: Re: Do you consider a house as an asset or a liability?
Post by: jumi07 on Jul 03, 2010, 10:52 AM
It depends. Say if you're not living in it or you didn't put it for rent, it's a liability because you've got to pay tax and also maintenance of the house.... However, If you got it rented, It will become an asset :)
Title: Re: Do you consider a house as an asset or a liability?
Post by: freefront on Jul 03, 2010, 12:52 PM
^I've got an auntie in New Jersey who is so thrilled to have 250 usd extra after she pays her monthly mortgage on a 20 yr., 350K rental property :D
Title: Re: Do you consider a house as an asset or a liability?
Post by: richdadreader on Jul 05, 2010, 02:09 AM

Strictly speaking, anything that takes out money from your pocket is a liability. Something that puts money in your pocket is an asset. Kaya sa mga kumukuha ng mortgage loan, 4 door na apartment, 3 yung tagabayad ng loan, yung 1, income. and repeat.


I like this idea
Title: Re: Do you consider a house as an asset or a liability?
Post by: charlene on Jul 05, 2010, 03:20 PM
Assets,that is if already  paid in full.  Sell it or rent in exchange for money/service or goods , > assets.There is "Future benefits" to be had in acquiring. Same as if you use it as home, benefit is you don't have to pay rent/cash out.


Liability, if not yet paid.


and whether Assets or liability you will have to incur some expenses like tax, maintenance,misc expenses.
Title: Re: Do you consider a house as an asset or a liability?
Post by: argel on Aug 17, 2010, 10:45 PM
I'll consider a house that I own is an asset if and only if it puts money on my pocket..
Even though it is fully paid, you still have to maintain it.. house maintenance hurts!

 :D
Title: Re: Do you consider a house as an asset or a liability?
Post by: tops5450 on Aug 17, 2010, 11:10 PM
....and you need to pay taxes too yearly :watchuthink:
Title: Re: Do you consider a house as an asset or a liability?
Post by: freefront on Aug 18, 2010, 09:00 AM
^Repairing the gate hurts the pocket,too.
Title: Re: Do you consider a house as an asset or a liability?
Post by: happyknappy on Aug 18, 2010, 09:41 AM
depende.. kung yung bahay pinamana sayo... or sarili mo na talaga.... wala ka kasing problema sa buwanan na renta...

ano ba naman ang amilyar kada taon...

nagiging liability lang to kung magpapatayo ka palang..... at papagawa ng bahay.. depende pa kung galing naman sa passive income mo yung pagpapatayo
Title: Re: Do you consider a house as an asset or a liability?
Post by: jaysn0w on Sep 22, 2010, 04:20 PM
hmmmm


half empty glass or half full glass...


half empty glass - you have to pay taxes, maintenance etc.

half full glass - you can use it to start up your business as a collateral in applying for a loan OR when you retire you can sell it at a much bigger price and transfer to a place thats peaceful, farther in the city limits and CHEAPER...


depends really on how you look at the picture...  
Title: Re: Do you consider a house as an asset or a liability?
Post by: Ageo on Sep 23, 2010, 12:55 AM
i asked this question to some of my friends. most of them considers house as an asset, specially to those who dont have their houses yet and are renting for years.
somebody overheard my question at ang sabi, "ikaw nga ang lumagay sa amin na upa ng upa na hindi naman magiging sa amin yung bahay" at sabay ismid hmp!...
oo nga naman ano? just think of those people na gustong gustong magkaroon ng sariling bahay...
pero paano naman yung mga squatters?
Title: Re: Do you consider a house as an asset or a liability?
Post by: me_edrian on Sep 23, 2010, 09:17 AM
for me it's asset, especially pag may family kana of your own syempre need ng space para maka tira kayo and magagawa nyo ang gusto nyo kung sa inyo talaga yun, the downside is yung maintenance nga and cost of acquiring a house, kaya for now rent nalang muna ako if maging okay ang business then mag hahanap na ako ng mga properties na rent to own, in that way yung hulug mo monthly eh di naman na sasayang dahil eventually bibilhin mo din yun. (just my opinion sir)
Title: Re: Do you consider a house as an asset or a liability?
Post by: freefront on Sep 23, 2010, 10:49 PM
...a paper asset , an actual liability.
Title: Re: Do you consider a house as an asset or a liability?
Post by: tops5450 on Sep 23, 2010, 11:25 PM
ano po ba ang working definition ng asset at liability pag ang pinag uusapan ay house :book:
Title: Re: Do you consider a house as an asset or a liability?
Post by: DonT on Sep 24, 2010, 10:42 AM

ano po ba ang working definition ng asset at liability pag ang pinag uusapan ay house :book:

Its actually an expenditure. You need it to have a place to stay while you are working or doing business...
But some will say na..you can also rent a house while working or doing your business.
So anu nga ba....
Kaya for me...if the cost of ownership (amortization + upkeep) of your house is larger than if you just rented an apartment...then its a liability.
If the cost of ownership of your house is less....then it becomes an asset eventually.

A 5M house(&lot) will provide you with almost all the necessities of a home plus taxes and a significantly larger maintenance cost.
A 5M peso investment can generate 41,000 pesos monthly (@10% pa, before taxes). That should be sufficient enough pay rental on a modest townhouse.

So which is better?
Title: Re: Do you consider a house as an asset or a liability?
Post by: bauer on Sep 24, 2010, 11:17 AM
Dont,

baka naman kasi yung mga bumili ng house & lot 5M eh wala naman cash na 5M?  kaya nasabi nila na house is an ASSET kasi downpayment lang, may 5M worth na sila na property.  Kaya lang, baka pagkatapos nila magbayad sa loan, eh umabot na ng 8M to 10M ang total payments nila.  yan for sure liability na dahil sa laki ng total expenses for property acquisition.
Title: Re: Do you consider a house as an asset or a liability?
Post by: DonT on Sep 24, 2010, 11:35 AM
Well...anu ba ang 'book value' ng House which is on mortgaged?

Ang alam ko, you really don't own it unless you have fully payed for it...technically the bank owns it...like the cars also.
Title: Re: Do you consider a house as an asset or a liability?
Post by: jleeton on Sep 24, 2010, 04:54 PM
For me its an asset  :D
Title: Re: Do you consider a house as an asset or a liability?
Post by: oca1101uk on Sep 24, 2010, 11:07 PM
asset for me... :applause:
Title: Re: Do you consider a house as an asset or a liability?
Post by: freefront on Sep 25, 2010, 12:47 PM
How caome merong second mortgage sa houses sa US? Meron ba dito?
Title: Re: Do you consider a house as an asset or a liability?
Post by: mlangseth on Sep 29, 2010, 02:08 AM
When you have completely paid off your house...
then, you are actually richer than you think..

My neighbor just sold his house few days ago to retire in Florida.
He sold it cold cash USD 825K.....hmnn nice amount to retire besides, SSS pension and whatever pension he has..

I am looking forward for my retirement also (bata pa naman ako).
However, will not move anywhere for now, so will not sell my house at this time, maybe later.
So, a house is definitely an asset in this case and mine.

Second mortgage is not advisable because it will make you indebted further..
just IMHO.
Title: Re: Do you consider a house as an asset or a liability?
Post by: freefront on Sep 29, 2010, 08:02 AM
^I was curious of the concept. Is this like consolidating debts whereby you take out a second loan, pay off the original balance, then you would be paying a higher installment because there is a "tira" because of the second loan?
Title: Re: Do you consider a house as an asset or a liability?
Post by: bobie on Sep 29, 2010, 10:03 AM

Both..
Title: Re: Do you consider a house as an asset or a liability?
Post by: wintan2006 on Sep 29, 2010, 02:17 PM
Title: Re: Do you consider a house as an asset or a liability?
Post by: mlangseth on Sep 30, 2010, 02:21 AM
@ Freefront- I think so..but I have not tried it so..I am not that sure..but your logic is there.

As fas as i know...utang pa rin iyan and could be worse, so why do it..
As much as possible strive to be debt-free..

Congrats Wintan - You are on the green!! :-*
Title: Re: Do you consider a house as an asset or a liability?
Post by: freefront on Sep 30, 2010, 06:46 AM
^Parang voice over: "Wintan has an opening, she has a plan, she aims....SCORE!!!!!"

Title: Re: Do you consider a house as an asset or a liability?
Post by: wintan2006 on Oct 02, 2010, 05:21 PM
          mlangseth ,i am not debt-free :D. Remember, i took a  20 yr loan from the bank here? ....13 more yrs and i am debt free. i am still taking advantage of the low interest rate here in taiwan ,sayang eh.
Title: Re: Do you consider a house as an asset or a liability?
Post by: sneaker23 on Oct 02, 2010, 08:58 PM
Title: Re: Do you consider a house as an asset or a liability?
Post by: freefront on Oct 05, 2010, 05:48 PM
^Fine! Put that way- it is an asset. Then, if your house gives you grief- it is a liability. Ours badly need a paint job.
Title: Re: Do you consider a house as an asset or a liability?
Post by: leonine_zafiro on Oct 05, 2010, 06:38 PM
its a NECESSITY! period.

or its part of the basic needs  :D
Title: Re: Do you consider a house as an asset or a liability?
Post by: tops5450 on Oct 06, 2010, 08:02 PM
Asset naman talaga ang house na perang natutulog. :hihi:
Title: Re: Do you consider a house as an asset or a liability?
Post by: bauer on Oct 07, 2010, 01:22 PM
i still like kiyosaki's definition of assets & liabilities.  it is realistic.  yung sa accountants, masyadong theoretical, di naman nakakatulong all the time sa totoong buhay.
Title: Re: Do you consider a house as an asset or a liability?
Post by: dinaren on Oct 07, 2010, 06:08 PM
the house being a shelter (the most basic component of our existence) is definitely a thing of value. Paying your amortization is just like paying for your safety and so it is not considered a liability. It just like paying for a taxi cab to get you to your destination.
Title: Re: Do you consider a house as an asset or a liability?
Post by: allanmm13 on Oct 07, 2010, 06:54 PM

the house being a shelter (the most basic component of our existence) is definitely a thing of value. Paying your amortization is just like paying for your safety and so it is not considered a liability. It just like paying for a taxi cab to get you to your destination.


That's were the problem arises.. Pinoy especially OFW cannot differentiate a "basic need" house vs a "nice to have" house.

Kaya nagiging liability instead of asset ang house.
Title: Re: Do you consider a house as an asset or a liability?
Post by: Ageo on Oct 07, 2010, 07:22 PM
ofws?  :boxing:  :D
Title: Re: Do you consider a house as an asset or a liability?
Post by: allanmm13 on Oct 07, 2010, 08:01 PM
Most, but not all.. only few  :D
Title: Re: Do you consider a house as an asset or a liability?
Post by: ajarn_alfred on Oct 27, 2010, 09:11 AM
If you can pay it in cash, then its not a problem.However,most pinoys can afford to buy a house using Pagibig,bank financing etc. So the answer lies on a person financial capability. It will become a liability if most of your earnings  proceed to its monthly amortization. So its better to check first if you have the capability to finance your monthly amortization. If not,then think twice