Tag Archives: Cash Flows

Your house: an ASSET or a LIABILITY?

There’s an interesting discussion going on in the PMT Forum, about one’s residence and whether it is an asset or a liability. By definition, an asset is anything that can directly or indirectly contribute future cash flows. A liability, on the other hand, is anything that can result to a transfer or disposal of an asset. In this context, is the house an asset or a liability? Here are a few thoughts from some PMT members. Says dollarbabe: After reading [Robert Kiyosaki’s Rich Dad, Po