Crossed the 100K net worth barrier over the weekend

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(note: I don't own a home yet, although I've never thought of a home as an investment asset, since it can go down in price)

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All your investment assets can go down in price but I follow you...I think.

My net worth is negative a shite load, so I'll focus on the fact that my assets have risen 10,000 in a year and that rate should rise now that I have my 401k eligibility working for me. So, I'm looking at probably age 50 to get to 100k

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(note: I don't own a home yet, although I've never thought of a home as an investment asset, since it can go down in price)

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Well, I know it's not at the bottom like it was a couple years ago, there are still great deals to be had. Interest rates are killer, as well. Just closed 30 year 3.25% last month.

What I mean is, my stock portfolio can go down. But, I still get benefit of dividends. Plus, stocks are so liquid that you can sell them easily to lock in your cap gains.

A house is a place were you sleep and take shits in , It does not earn any additional income and if the prices start dropping you won't be able to sell it. Also, even if you are capabale of selling it there is that other little fact : where the frick are you going to live?

I have been thinking of purchasing a house for rental income. Anybody got any experience with this?

A home purchase can be a very sound investment.

Your house is not an asset, even if it's paid off. It ALWAYS costs money to own a home.


Asset= Puts money in your pocket

Liability= Takes money from your pocket.


Owning is cheaper than renting long term, but as another poster mentioned, if your in a profession that requires relocating, that American Dream can become a Nightmare.

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Your house is not an asset, even if it's paid off. It ALWAYS costs money to own a home.


Asset= Puts money in your pocket

Liability= Takes money from your pocket.

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Maybe Robert Kiyosaki can explain it better:

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I watched a few minutes of this and his explanation is not correct at all.

An asset is simply a resource you own or control. Full stop. This has nothing to do with whether it creates income or expenses. An asset can do either or both. A house is, by definition, an asset.

A liability is a claim someone else has against one of your assets. Again, this has nothing to do with whether it generates income or expenses (although it will generally result in expenses). The mortgage is a liability.

Both the asset (the house) and the mortgage (the liability) generate expenses. However, the asset has the potential to create income as well, possibly enough to offset the expenses. Even if it doesn't, so long as expenses are less than the expenses you would have if you didn't buy, you're still ahead.

For example, if you buy a home (with or without a fixed rate mortgage), your expenses are pretty constant over time. This can be very good if either interest rates or housing prices rise. Or not good if the other way around.

But either way a house is an asset (not a liability) because it is something you control. Whether it generates income or expenses does not change this.

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if the prices start dropping you won't be able to sell it.

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Sure you can. You just have to come up with additional cash to pay off the remainder of the mortgage.