Is your house an asset or liability?

The recent cnbc interview really worried me about the way people define asset and liability. What is an Asset and what is a liability?

After watching the interview and read the article, I really don’t get it. Why buying a house to live in consider “an investment”? An Investment, or asset is defined when it put money in your pocket. Does your primary property put money in your pocket every month like a rental property? If the answer is no, then it is a liability – Period. However, You can turn it into an investment, or asset by leasing out part of your house or the whole house and collect income from it.

If you are thinking your primary resident is an investment because its value “must” go up every year. I am urging you to think again! This is why we have the credit crisis and the real estate bubble with…