assets and liabilities whats great?

i think it's because houses depreciate and you keep on spending to maintaining your house. i'm not sure. just what i thought when i read about your discussion.

It really depends on your personal point of view. The way he states in all of his teachings is he solely looks at everything as an investment, meaning if it's not making you money then it's causing you to spend money. Another way to look at it if you need to live someone where wouldn't you rather being paying your mortgage instead of your landlord's? My best advice for someone who is thinking about buying their first home and don't have a family with kids is to buy a multiple unit and live in 1 unit while renting out the others.

i think that the assets are great .own a house is not at alll an liable activity ,

Hi clemy, It all depends on which economy you live in. I first read this book while living in Nigeria, Africa.And kiyosaki's assesement would not be correct in that economy because you only own a house in that economy cash down more or less as there is very little access to bank finance and the term mortgage does not exist for the common man. I recently moved to the uk recently and found out that in this economy (which is the context in which Kiyosaki's book is written), the common man on the street does not pay for a house cash down and would have to finance that expenditure by borrowing fron high street lenders. With this in mind it is easy to understand Kiyosaki's point of view which in my opinion is a perfect assesement in the western economy. I do feel that the first stepto getting ahead in this economy is to adopt Kiyosaki's point of view. Mind you I have not seen a single millionaire who doesn't share this point of view, may be we should listen to them if we are to attain the level of their financial freedom

An asset will put money in your pocket(ie create income) and a liability will take money from your pocket (ie create an expense). So basically what that means is in some cases you'll pay taxes,bills etc on that house(expense) thus making it a liability, but on the other hand the same house that you own can be an asset if it's rented/leased out therefore creating an income, which makes it an asset.So it all depends on which way you look at it. It doesnt mean that one shouldnt own the house, what i believe it means is understand how and where the money flows, as far as income and expenditure is concerned. A house is more of a necessity, than an asset . Just the way a car is a necessity but ill use money to run/maintain it,(making it a liability) but the minute the same car becomes a Cab?, now we're talking asset, coz it will put money in my pocket. Its just a matter of understanding cashflow, when he talks about assets and liablilities, that all.

I don't think you phased that correctly. He owns many houses... His definition of a house that is considered a liability is when a house does not generate income for you. Anything that generate income is considered as an asset and anything that cost you money is considered as a liability.