If you own something that is costing you money, it’s a liability. If you own something that is making you money, it’s an asset. To win, stick to assets.
The house you live in will in general cost you money. That makes it a liability. But what if?
1. You buy cheap and in a downmarket? Get a good deal and the house might increase in value. That would make it an asset :)
2. Get a roommate or who helps pay for the costs of owning the place. That could make it an asset :)
3. You buy a duplex, triplex or multifamily home and only use one apartment for yourself. Build enough rental income and you have an asset :)
There is the alternative costs. We all want somewhere to live so if we don’t own a place we would probably have to rent something? How much would we have to pay in rent? Is that more or less than the cost of owning a place? Nine times out of ten you will lower your housing costs by owning vs. renting.
The only potential problem with owning you own place is that it might tie you down. Some of us move around a fair bit and wants enjoy the whole world. What can we do about this? Simple! Make your own place an asset.
How do you live today? Let me know!
