BellaOnline Forums Money Investing Is a House an Asset or a Liability?

Owning a home is the great American dream. It is often touted as an ideal way to save for the future and build equity. But as the Great Recession has shown, home ownership has its disadvantages as well. Is a house an asset or liability?

Is a House an Asset or a Liability?

What are your thoughts on home ownership as an asset?

Another expense with a home is homeowner's insurance. The mortgage company will require you to carry insurance anyway. This is just one more item to factor in when considering a home as an asset.

Home ownership is not for everyone. Many financial advisers suggest not purchasing a home if you do not plan to live in it at least five years. You may lose too much in the process of buying and selling that the house will not be an asset. This especially applies to people who move frequently with their jobs or careers.