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Dave Ramsey coarse
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pat-michigan
Posted 9/10/2015 05:38 (#4780854 - in reply to #4780582)
Subject: RE: Dave Ramsey coarse


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Norstman - 9/9/2015 22:00

KnowAFarmer - 9/9/2015 20:46

pat-michigan - 9/9/2015 11:54

Lots of "it all depends" on that one. If I could make the numbers work by borrowing some $ from a liability (the house) to buy an asset (mutual funds) I think I'd for sure take a second look at doing so.


Not sure I've ever heard anyone call a paid for house a liability.

If its your own residence(not renting it out) what return is it bringing you? None other than a roof over your head. Besides that it requires constant repairs. I would say it is a liability. If you really wanted to be cheap you could live a 10,000 dollar shack, it would provide the same as any other house.


Exactly.

I've owned houses that were assets. Never spent a night in any of them. Rent came every month, and it was more than the cost of ownership. Those houses had a spot on my balance sheet under the asset side.

I also own a house thats a liability. Sleep in it often. When I walk out to the mail box to mail out the insurance premium, the property taxes,or any checks for maintenance and upkeep, theres never any checks addressed to me for owning the place. Way more dough getting mailed out to own it than it brings in. Liability all the way.

Yes, everyone needs a roof over their head. I don't mind (too much) paying for a liability that keeps me out of the weather. Still doesn't put it in the asset column on my balance sheet. A lot of people can't get past the warm and fuzzy of owning a house, its the American dream after all. Trouble can start when they start buying into it really being an asset.

Edited by pat-michigan 9/10/2015 05:42
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