Property Pricing in your area - gone up or down?

[videogamesrock]

You are still talking about cash flow as if that has anything to do with whether that makes something an asset or liability. I was going by the definition; from the dictionary, generally accepted accounting principles, and the IRS. Cash flow has absolutely NOTHING to do with it. Nowhere in the definition did it say a single thing about cash flow. You are getting your accounting terms very mixed up; I'm surprised at that since you're a business major and Accounting I teaches this exact thing.

You feel free to consider your home a liability, I will consider mine an asset, and there's probably nothing more to say on it.

Take care.

Assets make you money, liabilities cost you money.

Read Rich Dad Poor Dad, you'll see I'm not the only one talking about this. If it costs you money, it is and always will be a liability.
My car gets me to work, I need to get to work to make money. My car is not an asset, it is a liability, its a tool I use to get to work, but it still does not make me any money. I choose to use my own car because taking a cab would be a higher form of liability. Cash is an asset, and therefore cash flow would also be an asset.

If you plan on living in the same type of place, without downgrading your standard of living, or moving somewhere completely different, then the equity in your home is irrelevant. Everybody else's equity has also gone up. This is simply inflation.

My friend bought a home in 1973. He paid $73,000 for it in Calabasas. It is now worth $1,000,000. He says to me, if I sell my home I will have made $927,000 in profit. I asked if he plans on moving into a smaller home, or moving into another part of the country. He said no because he likes where he lives and the size home that he owns. I then told him that the value of the home has grown due to the value of the neighborhood and by simply selling it and buying the same thing wont make him any richer. In fact, by selling it and buying the same type of home near by will give him zero cash zero ROI and therefore he will simply have transferred the value of his current market home into another liability.

He will have traded in his old million dollar home for a shiny new million dollar home.


Liabilities:
Housing
Food
Utilities
Children
Taxes
Insurance

Assets:
Cash
Income
Investment properties