Property Pricing in your area - gone up or down?

[jsd]

You don't have to agree with the textbook, dictionary definition of liability and asset, as laid out for you in this thread. It's your right to redefine words, if for some reason that's your thing. The rest of the world accepts that no asset exists without risk.

Rich Dad, Poor Dad thought it was clever to redefine a lot of common sense financial advice so that he could sell a few books. His company also went bankrupt.

But it's no business of mine how you want to define words that the rest of the world already has a common understanding of. I'll continue accepting my assets, already clearly defined in the financial world, as assets.

[LaterBloomer]

We may be talking apples and oranges here. Accounting, and the laws and definitions applicable to it, relate to businesses. As my home is not a business, do accounting terms, rules, laws apply to it?

[jsd]

We're not talking laws, we're just discussing the semantics of words.

Real estate is an asset, your mortgage is a liability. You might not want to rely on your home as an asset because of the risk, and that's fair, but it's still an asset.

[LaterBloomer]

Yes, we are discussing semantics.

If you ask some folks, "Does debit mean increase or decrease?," they'll say, "decrease." Those who've taken Accounting, if asked the same question, will respond, "Well, it depends on which type of account you're asking about." Same thing with "asset." Some folks will say it's anything that they own, whether tangible (your home, car, Beanie Babies, etc.), or intangible (your family, health, etc.) Others will say that assets are the economic resources of an economic unit (partnership, corporation, etc.). As the resources of an economic unit, an asset in business has many advantages that a personal "asset" doesn't have. An office building? It can be depreciated. A house? No. Business assets can be depreciated, and the associated depreciation expense decreases a business' income. When my house sold at a loss in the early '90s, I couldn't reduce my taxable liability because of it.

And I mentioned laws as someone referenced the IRS in a posting to explain a position.

[davewill]

... When my house sold at a loss in the early '90s, I couldn't reduce my taxable liability because of it. ...

You could have if you had had some capital gains to write the loss off against, but you're essentially correct.

[videogamesrock]

Yes I disagree with the textbook. The last time my personal residence was not a liability was when I lived with my parents and they gave me an allowance. When I moved out every place I've lived in has not been an asset, it's always been a liability.h

On a side note, I'm reading The Creature From Jeckyl Island. The first chapter talks about accounting and how banks take deposits and classify them as assets when they really are a liabilities to the depositor. You can call it semantics but accounting principles are misleading.

[jsd]

Yes I disagree with the textbook.

Right, and this is what we're pointing out. You're using your own definition and not the definition that the financial world agrees upon. That's fine, if weird, but it's your own redefinition.

The last time my personal residence was not a liability was when I lived with my parents and they gave me an allowance.

You weren't a stakeholder, so it wasn't an asset or a liability.

When I moved out every place I've lived in has not been an asset, it's always been a liability.h

If I'm really bad at picking stocks and never make any money in the market, that doesn't mean investments at large are not assets. It means I made bad decisions.

On a side note, I'm reading The Creature From Jeckyl Island. The first chapter talks about accounting and how banks take deposits and classify them as assets when they really are a liabilities to the depositor. You can call it semantics but accounting principles are misleading.

Well, this isn't exactly right. An oversimplification is that the actual cash that is being held in the accounts is an asset for the bank. The accounts themselves are liabilities. I think you're still confusing cash flow with asset.

[bjcheung77]

Where would you want to live in the US? For me, I think I've narrowed it down to three places.
1) Seattle, 2) San Francisco, 3) Honolulu
Hmm, websites have different views on the most expensive cities in the US.

The most expensive cities in America - Business Insider
The 10 most expensive places to raise a family in the U.S. - MarketWatch
Priciest urban areas - 10 most expensive cities in America - Pictures - CBS News

[LaterBloomer]

It's funny, although I think of retiring here, there, or somewhere else, I think I'll stay where I am. I would travel to any of those cities in a minute if the fares were low enough.

[bjcheung77]

:ack: Went to an open house to check around, too expensive for my blood...
Going to check out some more listings as the markets are hot in the area...