Claudia Hargrove Thoughts
Home: Asset or liability?
October 17, 2017 - Claudia Hargrove Thoughts
First, it is necessary to start by defining what is an asset and liability. An asset is anything that generates money flow into our pockets On the other hand, a liability is the opposite. True goods or services require money, maintenance, payments, etc. That is, he takes silver from his own pocket.
Do we get cash when we buy a house?
No, on the contrary, money comes out of our pockets.
When we are 100% real estate owners, do we earn money?
No, it does not matter if you do not have mortgages, debts or credits. All property requires maintenance expenses, payment of taxes and payment of services like electricity, water, among others.
An owned property would be considered an asset as long as it generates revenue after all debts have been paid. If all of the expenses are paid and there is money left in your pocket, there if a house is considered an asset.
For more information read this article
Is My Home an Asset or a Liability?
