The American Dream – Asset or Liability?

November 18, 2015

The American Dream – Asset or Liability?

By Deb Schmitz In Money Talk with Comments Off on The American Dream – Asset or Liability?

Ah – the American Dream – own your own home!  We’ve all heard this – it’s been programmed into our heads.  “When you rent – you’re throwing money down the drain, you can’t take a tax deduction for the mortgage interest”.  Robert Kiyosaki, author of “Rich Dad, Poor Dad”, takes a total opposite view.  He believes a house is a liability unless it is bringing in income.  But I challenge both- is it true?

If you’ve been following me long enough, you know how much I dislike “cookie-cutter” solutions.  Well, the American Dream of owning a home is a “cookie-cutter” belief to me, as well as the piece of advice to “pay off your mortgage as soon as you can” AND what Robert Kiyosaki believes.

usa realty concept


A home can be an asset or liability not only FINANCIALLY but EMOTIONALLY.  It doesn’t always come down to dollars and cents.  Consider the following situations – is it an asset or a liability?

  • It is bringing in income – you have a rental home
  • You are in some type of transition – divorce, relocating, retiring – or just not sure of any of the above
  • You have a young family and need a stable place to raise your kids
  • You plan on living there for a long time (paid off or not)
  • You have the nicest house in the neighborhood and the company in town that employs 50% of the population is closing it’s doors
  • You need some cash flow, you want to use the equity in your home to refinance

See what I mean?  Can you say a definitive YES or NO to any of these situations?  Do you know all the details behind each situation?



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