Well, according to the famous Robert Kiyosaki of Rich Dad, Poor Dad fame your house could be either. If you have a rental property that puts money in your pocket every month (cashflow) then you have an asset. However, if you own your home and you have to pay the mortgage every month meaning money is coming out of your pocket then your home is a liability. This is a great question to ask yourself as we are in the current economic times that we are in. If you own a home and are not facing foreclosure or a short sale, this may be a good question to ask and a good strategy to consider — If you have an extra room or a basement or an attic that you can turn into a room you could charge for and use that money to pay a portion of your mortgage then you have just created for yourself and your family an Income Property. Cash will flow into your home and you have less of a mortgage payment to make. How awesome is that? Hmmm!