When you are growing up you are tought to go to school, get an education, and get a good job. Make sure you have good credit then go buy a house. You are tought that a house is a good investment and will only help you in the long run.
False. Here's why.
It is true that real estate is a good investment but it is not an asset like many financial advisors claim. If you are paying a mortgage, insurance, and taxes then you have a negative cashflow on this property. In this case it is a liability. This property is taking money out of your pocket every month.
If however you were to buy a property and rent it out it will not have that negative cashflow and in turn be an asset.
If you continue to think of your home as an asset you will never understand why you can't seem to get ahead in life. Try to turn your home into a liability. Do you have a home based business? You can use a room in the home as a tax write-off if you use it for business. Look into tax laws and find out how much space you must use for this write-off. If you have an extra room why not go and rent it out?
Think of various ways to make your home work for you and not you work for your home.More Articles