Although financial experts often preachinvestreal estateBenefits, but one person disagrees; Robert Kiyosaki came into limelight by saying that the house a person lives in is a liability; As the saying goes, a house is not an asset, according to the controversial personal finance expert.
Why does Kiyosaki think your house is not property? According to him, a house eats up your money.
Kiyosaki explains on his Rich Dad Poor Dad blog, “A home doesn’t put money in your pocket; it takes money out of your pocket in the form of mortgage, utility bills, taxes, maintenance fees, etc.” obligation.”
Generally property can help you make money; Because your home costs you money every month, it is actually a liability; As a homeowner, you will have unavoidable expenses like maintenance and property taxes; You’ll also have to deal with everything from leaks in your home to replacing your stove; These costs are going to increase gradually and eat up a large portion of your monthly income.
If your home can’t earn any cash, it’s a liability; Kiyosaki said that once you can start earning income from the home, the home can be considered an asset; If you want to earn money from homepensionSo you should clearly calculate all the expenses incurred after buying a house, because it will reduce your income.
When it comes to investing, there are countless strategies in the market, but your primary residence should not be considered a source of retirement funds; This is because you have no control over external market factors, such as future home prices.
Investing in a home or real estate can be a great investment if you: invest in a property to rent out, enter the short-term rental market, or sub-let the property for rent.
Waiting for a property to appreciate enough to sell is a huge investment, Kiyosaki believes you should treat your primary residence as a liability until you can generate income from it ; If you have a clear understanding of your assets and liabilities, only with that understanding can you make a more realistic plan for retirement?