Is Your Home an Asset or Liability?
Assets vs liabilities
One of the basic points he tries to get across is to think of an asset as simply something that puts money in your pocket, and a liability as something that takes money from your pocket.
Thus your own home is always a liability under this thinking, and only an asset for the bank, since the mortgage payments take money from your pocket and puts it in the bank’s. Even after the mortgage is paid off, the home is still a liability because of rates and maintenance.
Whether an investment property is a liability or an asset depends only on whether rental income exceeds the costs of interest, rates and maintenance.