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Assets bring in income, homes are not assets, they are liabilities, they have expenses assigned to them.
The equity attached to them are an asset, but the house itself is a liability.
The home is an asset. Let's examine this - there's the mortgage (the security instrument) and the hard asset - the home, and the immovable asset - the land.
A home isn't a liability in the financial sense - you don't owe it to anyone. It's an object that you own that can either appreciate or depreciate in value.
The note, a security instrument, securing the debt owed on the home for a promise, is a liability.
The land is considered a unique asset. It is what it is, where it is and no two are alike. It is unique because it exists in it's space. We attach value because of this - to it's use and location in particular - it's an asset.
The home is an asset. Let's examine this - there's the mortgage (the security instrument) and the hard asset - the home, and the immovable asset - the land.
I would expect nothing less from a "realtor" who makes their living telling people to buy homes to gain "assets".. WRONG.. A home is an EXPENSE.. the house sitting there, with, or without the land, generates NO MONEY.. They do however generate liabilities.
Quote:
Originally Posted by walidm
A home isn't a liability in the financial sense - you don't owe it to anyone. It's an object that you own that can either appreciate or depreciate in value.
And regardless of it appreciating, or depreciating in value, it still, generates a liability.
Quote:
Originally Posted by walidm
The note, a security instrument, securing the debt owed on the home for a promise, is a liability.
And the home value - liability is equity.. The EQUITY is an asset. Simply having a house does NOT generate an asset.. Again, THERE IS NO MONEY COMING IN, there are however EXPENSES..
Quote:
Originally Posted by walidm
The land is considered a unique asset. It is what it is, where it is and no two are alike. It is unique because it exists in it's space. We attach value because of this - to it's use and location in particular - it's an asset.
Wrong as always.. The land might be unique, but its a unique liability. If you decide to create value and build a building on that lot that GENERATES REVENUES, THEN its an asset.. Simply holding onto the land, AGAIN, generates liabilities.
The fact that YOU attach a value in simply owning the lot, doesnt equate to an asset. Its the EQUITY thats the asset, not the lot. But you being a realtor, I would expect you to know such basic information, it seems I expect to much.
Here, I'll dumb the example down for you..
If houses are an asset, then why dont you rush out and buy a $100,000,000 home and then you can proclaim how rich you are!!
I would expect nothing less from a "realtor" who makes their living telling people to buy homes to gain "assets".. WRONG.. A home is an EXPENSE.. the house sitting there, with, or without the land, generates NO MONEY..
lol...I get it now...Robert Kiyosaki...
It doesn't have to generate money to be an asset. Go back and read the finance folks who have dispelled your little myth.
DEMOCRAT CLINTON was in very deep economic trouble until the REPUBLICANS under the leadership of Newt Gingrich bright Clinton kicking and screaming to the table and forced him to "CUT SPENDING" and balance the budget. You need a history lesson!
Huh? That just goes right along with my point that that the top 1%'s share of the wealth was highest under DEMOCRAT CLINTON and declined under Bush. Seems the Republicans do a much better for the middle class than do Democrats, the rich man's pal. Look at how cozy Obama is with Goldman Sachs - you know the Wall Street bankster firm that made record profits and record bonuses under the Obama admin.
And if that causes Wage Inflation and prices rise, you'll be okay with that, right?
Actually I’ve taken a dispassionate look at it and wage price inflation is the fastest and least painful way out of the economic mess we are in, in my opinion. The falling prices of houses are the biggest problem. In Japan they have been at their popping real estate bubble for over 20 years now. In a very real sense we could be looking at having 20% unemployment for the next 15 or more years. With true inflation we could be going through those years with full employment rather than 20% unemployment. So yes I am OK with wage price inflation.
P.S. The prices that I care about are the prices of houses.
How about because of the facts shown in this film? Tax the hell out of them! they made Billions of dollars in the last couple of years, how can anyone who is struggling and living check to check feel sorry or concern for them. If you doubt what I'm saying, look at this film and get back with me on this one
They are a;lready paying the highest corporate tax rates in the world and the top tenper cent paying like 905 of the fedweral revnues. Its time for me to see that too mnay depeding o too few has consequences at some point. We see it now in that comanies have shifted to make more from lessby cutting the fat;so to speak.
The deeds of Congress include lowering the capital gains rate to 15% and allowing carry through interest for asset and hedge fund managers to be taxed on this rate. They benefitted the most from the Housing Bubble, its only fair that they put an oar in the water and help row the boat when the the waters get a little rough.
How about because of the facts shown in this film? Tax the hell out of them! they made Billions of dollars in the last couple of years, how can anyone who is struggling and living check to check feel sorry or concern for them. If you doubt what I'm saying, look at this film and get back with me on this one
You make a very good point, and I'm all for clawing back money from the guilty parties in the Federal Government and on Wall Street. BUT that most certainly does NOT include everyone earning $250k and over. So, back off the hard-working upper-middle class, the job-providing small and medium businesses, and the profit-earning corporations that enrich their 401k and pension fund shareholders!
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