A HOUSE IS "NOT" AN INVESTMENT

How many times did you hear people say, "You should buy your own house because it is an investment". Well, they are partly correct. It is an investment or an asset if you get money out of it. If you purchase a house to have it rented, then it is an asset / investment because it is making money for you. But if you purchase a house for your own shelter, it is not considered an asset. It is in fact a liability. Why a liability? Because you spend cash for its monthly upkeep, maintenance and utilities. You even spend more on furniture, machines, and equipments to make your stay more comfortable.

Assets/Investments are the things or instruments that make money for you. Liabilities, on the other hand, are the ones taking your money away from you.