Quote:
Originally Posted by Flambeur 
Well yeah, but obviously value can be elusive for residential properties. But equity is equity.
But I was talking more about the concept of leverage negating the concept of an asset. Just because an asset is financed or not producing a positive cash flow doesn't mean that it's not an asset.
But I was talking more about the concept of leverage negating the concept of an asset. Just because an asset is financed or not producing a positive cash flow doesn't mean that it's not an asset.
Agreed, maybe my original idea was hasty.
Servicing debt is better applied to consumer debt.
A house is often sold as an investment, too often. Its just a mentality that everyone got caught up into believing as the market was booming. Equity only exists in a home if the market supports the price, its hard to test that unless you're selling your home. There are many variables that can effect the price beyond the market.
Ok, so you leverage yourself to buy this 'asset' and that does what for you? You live in it while you pay down the mortgage. If you find yourself in financial distress you cant sell it quickly, and if you do sell it you need to take on another liability or live on the street.
Its a great thing to own a home, but dont think you're buying an investment.
The term investment when applied to residential real estate should mean that it provides you with cashflow, sorry if that sounds like something you'd hear in rich dad poor dad.
Pio is one to talk, he spouts the same bullshit that you read in that book. Pio, I dont know who you're trying to convince about your investing and financial prowess, us or yourself.
However, it has apparently not damaged your ability to state the obvious. 
And, as I've said many times, I'm not a big deal. No idea why anyone else would be convinced of that.
