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View Poll Results: Is a home an asset or liability? | |||
Asset | 17 | 56.67% | |
Liability | 7 | 23.33% | |
I live in tater's whore of an ex-wife's chlamydia infested vag. | 6 | 20.00% | |
Voters: 30. You may not vote on this poll |
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12-14-2009, 04:56 PM | #1 | |
SFL Expatriate #2
Join Date: Nov 2008
Location: Raleigh, NC
Moto: CBR1000
Posts: 2,043
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Quote:
What you stated above makes sense in an "if I sold this item right now" scenario. If it would make you money to sell it right now, it could be viewed as an asset. IMO, of course. The real definitions of asset vs. liability are actually much less grey than that. |
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12-14-2009, 05:00 PM | #2 |
WERA White Plate
Join Date: Nov 2008
Location: Austin, TX
Moto: '01 Aprilia Falco
Posts: 1,041
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Actually, it's an asset because someone would give you money for it if you sold it. Totally independent of what you might owe on it.
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12-14-2009, 05:02 PM | #3 |
Elitist
Join Date: Nov 2008
Location: SF Bay Area
Moto: Gix 750
Posts: 11,351
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Even if it wasn't, it's still an asset.
Your bike is an asset, and your loan on it is a liability. They both exist simultaneously. Your bike isn't prevented from being an asset just because you have a liability (loan) on it. |
12-14-2009, 05:10 PM | #4 | |
SFL Expatriate #2
Join Date: Nov 2008
Location: Raleigh, NC
Moto: CBR1000
Posts: 2,043
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Quote:
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12-15-2009, 12:32 AM | #5 | |
WSB Champion
Join Date: Nov 2008
Location: Anaheim, CA
Moto: 2009 Kawi ZX6R
Posts: 5,570
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Quote:
Bingo again.
__________________
Train Hard Ron Paul - 2012 Mark of Excellence GM |
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12-14-2009, 04:48 PM | #6 |
WERA Yellow Plate
Join Date: Nov 2009
Location: Calgary
Moto: Gs500F
Posts: 683
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I consider my home an asset. I would be paying just as much if not more for a rental unit and I did not buy more home that I need. The market here for the type of home I own is not dropping, and I am not house poor.
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12-14-2009, 04:49 PM | #7 |
Serious Business
Join Date: Nov 2008
Location: New York
Moto: 1993 ZX-11 2008 CBR1000rr
Posts: 9,723
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Lets revisit your question is a home an asset or liability.
Lets say I bought my house cash. What happens to your question? What happens in the case where the value of the home exceeds the debt obligation? what happens to the extra? |
12-14-2009, 04:52 PM | #8 |
WSB Champion
Join Date: Feb 2008
Location: Springfield, MO
Posts: 7,146
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For the typical american. Bought the house at market value on a 15 - 30 year loan at 4.5 percent interest (estimated average mortgage rate).
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12-14-2009, 04:53 PM | #9 |
WERA White Plate
Join Date: Nov 2008
Location: Austin, TX
Moto: '01 Aprilia Falco
Posts: 1,041
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Huh, I always figured an asset was something I could turn into money, and a liability was something that it'd take money to get rid of.
Edit: Oh, and whatever way you look at it, my house is currently making me money. |
12-14-2009, 04:57 PM | #10 |
WSB Champion
Join Date: Feb 2008
Location: Springfield, MO
Posts: 7,146
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I will admit, I think completely differently than most people as far as business and finance goes.
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