|
  |
|
|
Who Said Your Home is an Asset ?
By Denis Kristanda of Clamnote International
One crucial understanding in managing and take charge of your own finance matter is able to differentiate between asset and liability. Overshadow by "The Big American Dream" or "The Big Australian Dream" many people still believe and think that your own home is an asset. On the contrary, it's actually your biggest liability. Why ? There are 2 things only that qualifies something as an asset:
1. It produces income -or/and-
2. It produces capital gain In general, your home did not qualifies for both. There is nobody paying rent and give extra income to you and you cannot really selling and buying your own home to realize the capital gain. (When you sell your home you might have a capital gain, but then you need to buy another one - usually more expensive one, hence there is no actually cash in hand due to its sales) Furthermore, most people will have mortgage/homeloan to "own" your home. Then was it still "the dream" to "own" that home which is practically it's owned by the bank? It's much cheaper to get a home by renting. If the main reason is to avoid people ask you to move from rental property from time to time, then go to your real estate agent ask for longer term contract -or- even offer pay more than the asking. Even $5 cheaper per week will entice landlord to give long term rental to most anybody. How to make your home become less liability and start becoming as an asset? Some of them: [o]Rent out that extra bedroom to local uni student or local worker (not to your own children)
[o]Start a home office business based on your own home
[o]Do "leap frogging" to own new investment property by taking the equity from your home
[o]If you buy your next "dream home" , buy it on family trust/company name, and rent it from your own company ! That's what the rich does. It gives them asset protection and maximum tax deductibility. Engaged professional to do this !
[o]Divide your big house in 2 and make it a duplex.
|
|
 |
|
No reactions yet.
Please login or sign up to rate this intel.
Please login or sign up to add a comment.
The copyright for this content entitled "Who Said Your Home is an Asset ?" has been specified by the contributor as:
Creative Commons Attribution-Noncommercial-Share Alike 3.0
Details 
This content may be copied, distributed, and modified, as long as a) it's for non-commercial purposes, b) the original author is acknowledged with a link back to the content page, and c) if the work is modified, the result is distributed with this same license.
If you use this content according to the license specified, you must link to the following URL:
http://clamnote.qondio.com/
|
|
May, 2012
2008
January, February, March, April, May, June, July, August, September, October, November, December
2009
January, February, March, April, May, June, July, August, September, October, November, December
2010
January, February, March, April, May, June, July, August, September, October, November, December
2011
January, February, March, April, May, June, July, August, September, October, November, December
2012
January, February, March, April, May
|
|
Not a member yet?
Qondio is a powerful network for making it online. If you have a website to
promote, we can help.
Sign up and get in on the action.
|
|
Welcome to Qondio! Discover the awesome power this network can deliver by going to our About page. Or you could skip straight to the Sign Up form.
|
|
