Hmmm…..Remember in 1997 when Robert Kiyosaki said that your home was NOT an asset? He shook the financial world to its very core and made a lot of enemies very quickly – homeowners and financial institutions alike.
Well, fast forward to 2015 and I, a Realtor by occupation, bought my first home and I am very proud of myself for achieving this goal. It’s wonderful to have a roof over my head whether a home or an apartment. I grew up in apartment life and that was a great experience as well. Since I never had a home, that was a goal I always wanted to achieve so kudos to me for accomplishing that. Yay.
Now, if you haven’t heard, the first question Robert Kiyosaki answered was, what is an Asset? The definition of an asset according to R.K. is something that put $$ into your pocket. Well, does a home put money into your pocket? That depends. Is your home a rental property? If your home is a rental property, then Yes it is an asset because other people are paying you. That money is not coming out of your pocket.
After I bought my home and started paying for Homeownership – property taxes, water, sewer, cutting the grass (because I don’t want to do it), homeowner insurance + flood (I live in a flood zone), I remembered the question that Robert Kiyosaki asked on that early morning Informercial that I was up watching because I couldn’t sleep and he said, “Your house is not an Asset! and the hosts eyes lit up and he was taken aback.
Robert went on to explain how if you are paying all of these expenses out of your pocket then it cannot be considered an asset of the person paying the expenses. I thought well this house is gonna have to start paying for itself because this can be overwhelming especially when you think that as we age and want to work less, these expenses still have to be met in order to live comfortably. Most of the older generation have pensions that may cover most if not all of these expenses. However, remember pensions and social security is currently at risk of not being able to stand the test of time as people are living longer than pensions may be able to pay for them.
So what to do? That’s why I asked the question on my last podcast, Curious! Can your Home Pay for itself? This question bought to mind the next logical question, Is Your Home an Asset or a Liability?
Take a listen and let me know what you think! We can continue the conversation.
I love my home and being a homeowner is a goal I wanted to accomplish and as a Realtor would love to help others accomplish as well. However, moving forward it may be time to look at Homeownership through different eyes and ask different questions.
If I can be of service, please email me at email@example.com.
To your True Wealth – Your Health!