Your House is Not an Asset

Your House is Not an Asset

I know lots of people will disagree with me on this topic. I got your point, I was on your same position before. But let me finish my blog and then you put your comments afterwards.

Asset have different meaning base on who are you going to ask. For some, they may say that your house is an asset while for some, they will tell you it is a liability.

In the end, it’s up to you to decide which one to believe.

I am a follower of Robert Kiyosaki, which started after reading his best selling book “Rich Dad Poor Dad”. On his book, he made a short definition of asset and liability.

Asset, according to him is anything that puts money in your pocket. On the other hand, liability is something that takes money out of your pocket.

Makes sense right?

House is an asset if somebody is renting it or you use it for monetary purpose in which you are getting something in return.

However, if you will use your house personally, then it will become a liability. Who will pay for the damages incur inside? How about the electricity bills and maintenance? That’s right, everything you have to pay out from your pocket. Are you going to collect fee from your family members? Of course not. And that makes it a liability base on Rich Dad Poor Dad’s logic.

Your current house can only be an asset if you will sell it and gain from it. Which, most unlikely won’t happen to majority of us. We consider it an investment and have sentimental value on it. We intend to keep it and pass to the next generations as long as they can use and keep it.

For most Filinos, especially those working abroad, we prioritize on house thinking it would be a good investment. We spend thousands up to millions in building one or renovating existing one. When it comes to the end of contract and we go back to the Philippines, we only have the house which turns to be a liability instead of an asset.

It is only thru acquiring assets that we can stop being OFW and go back to our loved ones in the Philippines. It is also the key to retire from our current job and live the life that we want. Acquiring liabilities is never a good investment.

Start it right, invest in assets only. Do not be fooled by false assets that later become a big liability for you. Stay educated and know the difference.

P.S. A year ago, I do not know anything about investment. Then I joined Truly Rich Club by Bo Sanchez. It was the best decision I ever made in my life. Brother Bo is a spiritual preacher and at the same time, financial literacy advocate whose purpose is to help people become rich in order to serve the LORD with the money that they have. He guided me along the way, explaining how I can manage my money and make it work hard for me. Now I’m investing in stocks and mutual funds and have a clear path for my future. Soon I’ll open UITF account as well. All are made possible by his guidance and teachings on every steps to become an investor. Being OFW isn’t forever, this is my EXIT PLAN. It’s amazing how his teachings change my life. I’m inviting you to join the club too, JOIN TRULY RICH CLUB. If you have any question, feel free to leave your comment below. CLICK HERE TO JOIN

About Richard Macalintal

Hi my name is Richard. I am a Registered Financial Services Consultant in Singapore. If you have any queries or you need help on your insurance policies and investment linked products, feel free to message me :-) We can have a cup of coffee while I do financial review and give advice with regards to your finances :-) Contact me thru email rlmacalintal(at) or SMS me +65 82235186. Disclosure: I am a Financial Consultant of AIA. The statements or opinions expressed on this site are my own and do not necessarily represent those of AIA.

Leave a Reply

Your email address will not be published. Required fields are marked *


This site uses Akismet to reduce spam. Learn how your comment data is processed.