Comments on: Your Home: An Asset or Liability? http://www.americanconsumernews.com/2007/04/your-home-an-asset-or-liability.html Helping Smart Shoppers Save Sun, 21 Mar 2010 20:52:45 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Amway and Quixtar - an opportunity for anyone http://www.americanconsumernews.com/2007/04/your-home-an-asset-or-liability.html/comment-page-1#comment-652 Amway and Quixtar - an opportunity for anyone Mon, 30 Apr 2007 11:02:00 +0000 http://www.americanconsumernews.com/2007/04/your-home-an-asset-or-liability.html#comment-652 According to various (relatively) new international accounting standards launched in the post-Enron age, something is considered an asset if "it is probable that any future economic benefit associated with the item will flow to or from the enterprise." <br/><br/>It's quite common for people to "move up" - ie, they sell their house and buy a more expensive one. It's also it's not unusual for people to lose money, or alternatively, die. In each of these cases a family home is a liability, not an asset.<br/><br/>Unless there are actual plans that make it likely you will sell your house at a profit - then even by normal accounting standards, not just Kiyosaki's "new thinking" the family home is not an asset. According to various (relatively) new international accounting standards launched in the post-Enron age, something is considered an asset if “it is probable that any future economic benefit associated with the item will flow to or from the enterprise.”

It’s quite common for people to “move up” – ie, they sell their house and buy a more expensive one. It’s also it’s not unusual for people to lose money, or alternatively, die. In each of these cases a family home is a liability, not an asset.

Unless there are actual plans that make it likely you will sell your house at a profit – then even by normal accounting standards, not just Kiyosaki’s “new thinking” the family home is not an asset.

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