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Old 01-28-2011, 10:34 PM
 
12,671 posts, read 20,499,825 times
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Quote:
Originally Posted by user_id View Post
Its an asset to whoever owns it, that would be the individual that brought the house.
Did this buyer paid cash for this home?

 
Old 01-28-2011, 11:58 PM
 
Location: Conejo Valley, CA
12,476 posts, read 16,976,529 times
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Quote:
Originally Posted by Texas User View Post
Did this buyer paid cash for this home?
It doesn't matter, the home is an asset regardless of whether the buyer purchased it with cash or borrowed funds.
 
Old 01-29-2011, 12:56 AM
 
9,857 posts, read 6,736,071 times
Reputation: 3282
Yes they are frugal IMO. I know some that own a Rolls Royce and play tennis with Bill Gates; they end up buying things often from WalMart, Costco and Big Lots. Mostly because most all came from nothing and have middle class values.
 
Old 01-29-2011, 02:09 PM
 
12,671 posts, read 20,499,825 times
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Quote:
Originally Posted by user_id View Post
It doesn't matter, the home is an asset regardless of whether the buyer purchased it with cash or borrowed funds.
It may not be an asset to the individual who ends up selling this home.
Thats like saying a Vehicle is as Asset also then.
 
Old 01-29-2011, 02:10 PM
 
12,671 posts, read 20,499,825 times
Reputation: 2618
Quote:
Originally Posted by RCCCB View Post
Yes they are frugal IMO. I know some that own a Rolls Royce and play tennis with Bill Gates; they end up buying things often from WalMart, Costco and Big Lots. Mostly because most all came from nothing and have middle class values.
You can take the boy out of the farm but you can't take take the farm out of the boy.

Costco and Sam's Club are smart shoppers. Get them in bulk and whole sale price.
 
Old 01-29-2011, 03:59 PM
 
Location: Conejo Valley, CA
12,476 posts, read 16,976,529 times
Reputation: 4304
Quote:
Originally Posted by Texas User View Post
It may not be an asset to the individual who ends up selling this home.

Thats like saying a Vehicle is as Asset also then.
The that he/she is able to sale it shows you that its an asset. If the home wasn't an asset it would have no value.

I hate to break it to you but an Automobile is an asset....
 
Old 01-29-2011, 05:20 PM
 
12,671 posts, read 20,499,825 times
Reputation: 2618
Quote:
Originally Posted by user_id View Post
The that he/she is able to sale it shows you that its an asset. If the home wasn't an asset it would have no value.

I hate to break it to you but an Automobile is an asset....
What if the house was sold as a loss?

How is an Automobile a Asset? Its a highly depreciable item. Infact it loses most of its value in the first 2 years.
 
Old 01-29-2011, 05:36 PM
 
Location: DFW
6,717 posts, read 11,177,059 times
Reputation: 4980
Quote:
Originally Posted by Texas User View Post
What if the house was sold as a loss?

How is an Automobile a Asset? Its a highly depreciable item. Infact it loses most of its value in the first 2 years.
Depends what definition of Asset you're using..

Business definition of Asset: Things (and intangibles) of economic value towards business activities.

Rich Dad, Poor Dad definition: Anything that bring future cash flows in excess of what you paid to acquire such thing.

The car clearly fits the first definition but not the second one (though I tend to intuitively associate "asset" with the latter despite my finance background.)
 
Old 02-01-2011, 10:38 AM
 
Location: Pikesville, MD
5,229 posts, read 11,493,051 times
Reputation: 4846
Quote:
Originally Posted by Texas User View Post
What if the house was sold as a loss?

How is an Automobile a Asset? Its a highly depreciable item. Infact it loses most of its value in the first 2 years.
"Depreciation is a concept used in accounting to measure the decline in an asset's value spread over the asset's economic life. Depreciation allows for future investment that is required to replace used-up assets."

What Is A Depreciating Asset?

Average Buyer: The Appeal of a Depreciating Asset

How old are you? You really have your brain completely closed up and unable to learn basic concepts. I realize now it's not because you WANT to understand them, but can't, but because you steadfastly REFUSE to understand them.
 
Old 02-01-2011, 11:04 AM
 
Location: Conejo Valley, CA
12,476 posts, read 16,976,529 times
Reputation: 4304
Quote:
Originally Posted by Texas User View Post
What if the house was sold as a loss?
Whether not something is an asset has nothing to do with whether you've received a capital gain from it or not.

Quote:
Originally Posted by Texas User View Post
How is an Automobile a Asset? Its a highly depreciable item. Infact it loses most of its value in the first 2 years.
Because it has value. Automobiles don't lose most of their value the first 2 years either...
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