Your Home is an Asset

You would be forgiven, understood even if you were to say that your home is an asset.

The roof over your head gives you a sense of shelter, security and safety that cannot be replaced. Indeed, can you imagine, touch wood, what life would be like if you were homeless?

Nothing can replace the emotional bonds that are built out with loved ones in the privacy of one’s home as well. The home is a safe space from which partnerships are formed and children find the ability to express oneself?

The Balance Sheet

Regrettably, irrespective of the abundant rain or shine in this part of the world, the financial report shows that your home is a liability.

The home typically has a mortgage and a mortgage is a liability to the homeowner. A liability is a series of expense payments paid to your bank. Every month, the bank has a contractual right to deduct a monthly payment from you to finance your upfront acquisition of the apartment, condominium, or house.

For the average person in the world, notwithstanding the emotional attachment one develops with one’s home, the home is subject to payments to the bank, failing which, the bank can take possession your home.

This controversy was stoked by none other than Robert Kiyosaki, in his book Rich Dad, Poor Dad. The books are available from Kinokuniya Malaysia and on Kindle/Audible from Amazon USA.

To read the lessons and beliefs of Robert Kiyosaki’s Rich Dad, feel free to click on the links above. In the alternative, if you wish to discuss this financial angle to your home, leave a message, question or like in the space below!