111
votes
Accepted
Why does Warren Buffett consider real estate as productive asset?
Real estate can be rented out (or otherwise "used"), so it "produces" income. He's not solely investing in real estate in the hopes the value increases, he's saying it's a better investment because ...
- 35.9k
102
votes
Accepted
Is a house an asset?
Is a house an asset?
Assets are simply owned property with value. My computer is an asset, my car is an asset, my house is definitely an asset.
People who say houses aren't assets are trying to sell ...
- 70.8k
70
votes
Accepted
What can my relatives do to minimize their out of pocket expenses on their fathers estate
Also the will stipulated that the house cannot be sold as long as one of my wife's aunts (not the same one who supposedly took the file cabinet) is alive.
This is a turkey of a provision, ...
- 21k
42
votes
"Buy assets, not liabilities": How is it possible to buy a liability?
In this sense, a liability is something that would cost you additional money to continue to own, or otherwise hinder your financial position.
To quote Kiyosaki directly (and explicitly explain this ...
- 9,553
24
votes
Accepted
"Buy assets, not liabilities": How is it possible to buy a liability?
The definitions in the book are:
An asset is something that puts money in your pocket and a liability is something that takes money out of your pocket,
Buying real estate is an example of an asset - ...
- 140k
22
votes
Accepted
Transfer value of a mortgaged house
The future earnings from the house are only relevant in as much as it affects what other people might be willing to pay to buy it. If you tried to account for them as well as the current value of the ...
- 30.1k
20
votes
Transfer value of a mortgaged house
We're looking at transferring her interest in the property to me, for the purpose of cleaning up her assets so she can qualify for Medicaid.
You may not be able to do that do that - there are rules ...
- 140k
15
votes
Cash in hand as an asset
An asset is simply something that has value and is worth something. It doesn't necessarily need to generate any income (stable or otherwise). Cash is an asset because you can use it to buy things. A ...
- 9,553
13
votes
Is a house an asset?
TL;DR: a house is an asset but not really an investment.
There is an argument that houses are assets, so no amount of money spent on a house is ever wasted. After all, you can always sell the ...
- 21k
12
votes
Is a website/domain name an asset or a liability?
This depends on your definitions of assets and liabilities.
The word "asset" has a fairly straight forward definition. Generally speaking, an asset in finance is something that you own/control that ...
- 116k
12
votes
Is a house an asset?
When most people buy their first house, they don't have the full purchase price (plus all the other costs associated with the purchase) available in "cash". Most people have to take out a mortgage for ...
- 1,062
11
votes
Why does Warren Buffett consider real estate as productive asset?
Gold is a commodity. If I have some gold, my gold is exactly the same as someone else’s gold. I have absolutely no control over the value, and when I go to sell it, my price is completely dependent on ...
- 116k
9
votes
Accepted
Understanding my company's liabilities
Ask your accountant for a profit and loss statement for the current year. What you're showing us is is a balance sheet. You can't infer taxes from a balance sheet but you can from a profit and loss ...
- 273
8
votes
Is a house an asset?
Kiyosaki is changing the meaning of the term "asset".
For regular folks, "asset" is an emotional word, which means "thing of value". Liability means an undesired thing.
For cost accountants, "...
7
votes
Accepted
How should one bequeath a large asset (e.g. real estate) in a way that will cause the least disagreements among multiple heirs
The first step is to talk to your heirs and fund out if they even want the large asset. If they don't want the asset, then it would be far better to leave instructions in your will for the asset to be ...
- 2,427
7
votes
How do I calculate my net worth according to the book "The Millionaire Next Door"?
Disclaimer: If I recall correctly.
Dr Stanley removed the calculation of net worth in the book Stop Acting Rich. In the book, the Millionaire Next Door, the home was included in the net worth ...
- 78.6k
7
votes
What happens to the physical assets such as laptops and phones after closing a company?
Assuming that all debts were paid, [...] As an owner of the company, would I be able to keep the devices as my own property? What could happen to me if I kept them for myself?
spain
When the company ...
- 80
7
votes
Understanding Account Balances On E*TRADE
With just that detail, here's all I can tell you:
You have cash in your account of $308.99
Of that cash, $8.99 is available to invest or withdraw (you apparently need to keep $300 in cash either for ...
- 140k
7
votes
"Buy assets, not liabilities": How is it possible to buy a liability?
In his book Rich Dad , Poor Dad Author Robert Kiyosaki mentions to "Buy Assets not liabilities". Asset means something that appreciates in value over time and Liability means something that ...
- 261
6
votes
Accepted
What happens to your assets if there is no heir?
The short version is that the state government claims the estate when no relatives can be found and no will/estate plan exists. How the government uses that varies by state.
From Legal Zoom:
...
- 70.8k
6
votes
Why does Warren Buffett consider real estate as productive asset?
Isn't real estate's price increase only driven by other people's demand
Yes, that's what makes it productive. Productive assets, in general, have prices that are largely based on their ability to ...
- 10.5k
6
votes
Accepted
Why do banks give loans instead of buying assets themselves?
Banks are designed to be good at evaluating loan applications. They aren't designed to be good at running businesses. And if banks decided that they wanted to get into the apartment rental business, ...
- 27.9k
6
votes
Bank treating loan as asset
Before lending some of your money out you have the money. That's an asset. After you lend the money out, you no longer have the money but you have a different asset: the fact that someone has promised ...
- 13.4k
6
votes
What would happen to the price of a high-demand, no-supply asset once liquidity reaches 0?
You are misunderstanding how pricing works on a stock.
The price you see quoted as the stock price is the last transaction that actually took place. That is, a buyer and a seller agreed on that price. ...
- 116k
5
votes
Accepted
Asset allocation when retirement is already secure
he general advice I get is that the younger you are the more higher risk investments you should include in your portfolio.
I will be frank. This is a rule of thumb given out by many lay people and ...
- 15.1k
5
votes
How to calculate return for "negative" investment
For uneven cash flows the appropriate calculation is the internal rate of return. Although it can be calculated by hand, if you don't want to learn the Newton-Raphson method, you should use Microsoft ...
- 4,277
5
votes
Receive liability as a present
A car is an asset. Just because it has maintenance costs does not mean it is a liability. You can sell the car, keep the money, and have no more costs to pay. If the car had a loan attached that you ...
- 140k
5
votes
is high credit score an asset?
Yes it's an asset.
No it's not a tangible asset.
You also likely won't be able to calculate a reasonable price for a specific credit score. It's an asset as much as an idea you have. Mostly ...
- 2,778
5
votes
What happens to the physical assets such as laptops and phones after closing a company?
When a company shutters with excess assets after paying debts, the shareholders get to decide what they wish to do with those excess assets.
If there are many shareholders (or even just one ...
- 9,392
4
votes
Coin collection evaluation process
Coin collections [or collectables] in general are very difficult to evaluate. There is very little information that is freely available. The prices are very volatile.
Given this, it is best you surf ...
- 57.2k
Only top scored, non community-wiki answers of a minimum length are eligible