Is A House An Asset Or A Liability? [Finally Explained]

(Yes, This video is sponsored by skillshare)

Is a house an asset or a liability? That is one of the biggest questions many people have when they think about buying a house.

It is important to understand real estate in terms of assets and liabilities and the different ways you can buy a house so you will no longer wonder Should I buy a house?

In this video, we are going over 3 main ways we can buy real estate and how each one affects your finances so you know how to invest in real estate.

You’ll learn how to build home equity in a property without using your own money. You’ll also learn when a house is considered an asset or a liability.

Check out these other awesome videos from The Better Men Project:

[ZacharyLaid]

Depends how you use it.
Asset if you rent it out.
Liability if you live in it and pour money into renovations that won’t bring back much money when it comes time to sell.

[shifrahdevorahwitt]

The most valuable part of the video was the end understanding how to turn a home you live in, into an asset. that was the part I have been trying to understand. Thank you so much.

[bonkahermitakaintjudge]

It is becoming more and more apparent to me that whether something is an asset or a liability is similar to beauty.Asset or liability is in the eye of the beholder. If you are smart you can virtually turn any liability into an asset. Thanks again for another great presentation.

[bruh-jolw]

It is only an asset when you rent it out or sell it

[stevengtv]

When you own your own home you can rent out a bedroom or two, your housing costs are fixed and so t go up like rent does (except property tax), you need to live somewhere, you might as well pay yourself. Renting is a guaranteed liability. With a house you can at least recoup some or all money.

[TalldrinkHO]

I liked how the house became an asset if you rented out part of it. I believe the house could also become an asset if your business was in your house like the small businesses that are started in the garage.

[angelao]

This is perfect! I was just thinking about the differences between a liability and an Asset for buying a house! Thank you!

[dewayneanderson]

Everything costs money renting or buying. Everyone has to stay somewhere. So a place to stay is a liability no matter what.

[samv]

Maybe I'm missing something but if you buy a duplex and rent out both sides, where do you live? If you live in your duplex, in most if not all states, you can claim a homestead exemption and reduce your property taxes by as much as 50%. You can also claim your mortgage interest on your federal income tax return. Unless you still live with your parents or find an apartment for substantially less than the rent you charge for one of your units, you're better off living in your duplex. Even better, buy a triplex or 4 unit. And keep in mind that house hacking is great until you have a family.

[Shmevin]

you can also do house hacking. buy a duplex live in one unit and rent the other one out. the tenant will pay your mortgage and you cover the rest.n great video btw

[shifrahdevorahwitt]

Just want to thank you so much. I was trying to figure this out last night on my own and feel so blessed that i found your videos this morning. Thank you for your work. Keep it up. I am a new subscriber and look forward to learning a lot from you. Blessing you with continued success and material and spiritual riches.

[adiff]

Bro but my mortage is greater than that of my rental income🤧
Rent- 5000rs monthly
Mortage-15000rs monthly

[badpapae]

Why would you rent as opposed to buy, rent takes money each month just like a mortgage. But in the end you don't own it.

[jamesengland]

Having a place to live is a cost. Buying that place costs less than renting it from someone else who is renting it to you at a profit. It's not an asset to them if they're not profiting from it. Therefore, in that sense, a house you're buying can be considered an asset. It frees up that difference in income to be used to generate other income. And by the way, the duplex analogy is false- it's the same as buying 2 houses half the size, 1 to live in and 1 to rent out. It may be a better value as a property though.

[markburks]

I know I’m late to the party, but when you rent, you are paying for maintenance, taxes, insurance and even cash flow in the landlords pocket if they bought their property right. The problem is the renter is often ignorant to this fact. Owning should always be cheaper than renting if the buyer is not overspending.

[Mar-ftzq]

Buy the right Liability first to shelter depending on your ability, then pursuing to build an asset.... thanks to share this mindset video....

[moneymanfernando]

True, I have to pay mortgage including taxes and insurance, repairs, maintenance and upgrades. All very expensive. You make money in the future when you sell it but add up all the money you spent on your home while you lived in it and see if you really make a profit ?? I say probably not. The realtors, homebuilders, mortgage companies and title companies make a lot of money when someone buys or sells a home. Think about it. A long time ago they lobbied congress to give people a tax write-off when you bought a house. Do you think it was to benefit buyers ??

[thirddequito]

Assets is something with value you own. Even if you are living in your own house, it is an asset because that house provide you a value and you are benefited.

[peterkinslow]

What if you do not want to be a landlord?

[dvwLEARN]

Wow! Man you are a champ. Thank You 🙏🏻