Home is Investment or Liability?

Country roads, take me home
To the place I belong
West Virginia, mountain mama
Take me home, country roads

That is a part of song “take me home, country roads” by John Denver. This song can bring us a memory about our home, because this song play a strong emotion in our heart.

Having house is a dream of everyone, they always think having one is achievement in their life. It is not wrong, because having own house play a lot of emotion.

Robert T Kiyosaki, the author of “Rich Dad Poor Dad” say house is liability not an asset. It is depend of the ability of the house to generate income or spend expense. If you rent your house, it is an asset , but if no one rent your house, it will be liability.

Should you buy a house? Of course, having a house is everyone dream, at least we have one in our life. It is just when a good time to buy it. In my opinion, buying house is investment or not depend on his value. Sometime rent house is better decision than buy one, it also give you more flexibility.

In Singapore rent house is a better decision rather than buy it. It is because the price of condominium in Singapore about $1.8 million. You can rent it for $2500-3000 each month. You need 50 years to get Return of Investment (RoI) of your real estate.

It is different in Indonesia, having house in there is a better decision. Majority of RoI real estate in Indonesia is 10-20 years. That is mean, if you buy a house and you rent it to someone else, you can buy another house is 10-20 years.

Having a house is necessary, but it is better you build your asset first to buy your dream house.

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