Recently talked to a friend during our “yum cha” session:
Friend: Hey! I bought a house. I think it’s time for you to buy home, it is a good investment.
Me: You rent it out?
Friend: No, I will be staying inside.
Me: Come on, you are not doing investment, that’s your liability…
Friend: I think it is a good investment to me …
Me: Hmm.. you bought a home and that’s your liability. To me, you just secure your capital. If your house helps you generate positive cash flow, then that’s an investment …
Friend: I have a conservative mind, I still think it is a kind of investment.
Me: Hmmm …
What do you think.
Liability.
agree… if you are staying in it… it’s a liability.
Like Robert Kiyosaki always said, “Your house is not an asset!”