Is Your House an Asset?

Oh man, are we sure we want to get into this? :)You reserve the right to absolutely disagree with everything you're about to read, matter of fact, if that the case, I want to see your comments below!If you're a homeowner or have been considering buying a home there is a chance, and we could probably even say it's likely, that you've been considering your home to be an asset.What is an asset? There are varying definitions but basically it's something you control that has economic value and can be converted to cash (also an asset). You could say it's an item, tangible or intangible, that has a net worth, a value in the marketplace. I would also like to say an asset is something that pays you, contrast to liability, which is something that is, or will be, taking money from you.So easy right? Your home, assuming you have equity in it, (worth more than you owe), has got to be an asset?Not so fast.Property taxes need to be paid every year, insurance needs to be paid every year, all utilities are paid by you monthly in most cases (contrast to renting where in some cases the rent includes certain utilities). Then there's the time involved to mow the yard, shovel the sidewalks, keep the flower beds weeded out and looking great, home repairs, maintenance (routine and not-so-routine) and more expenses that pop up from time to time that are associated with home ownership that I'm missing here, like replacing the roof or cleaning the gutters.All this and we haven't even calculated interest on a mortgage yet. That's a subject all it's own.So walking into your local Realtors office and throwing down 20%, 50% or even 100% of the total cost for your new house, without doing much research and pencil pushing, and expecting to consider this an asset is not gonna work most times. Not only is there a chance you'll never get all your money back out of it there's a chance it could ruin you.Robert Kiyosaki says if your house is your biggest investment, you're not an investor. That's a paraphrase and no, I don't agree with all his theories, including no money down real-estate investing which is freaking ridiculous in most cases.So what, never buy, always rent?That's not what I'm saying, although in some cases that may be the thing to do. What I simply want to look at is the fact that while investing a couple thousand or several million in your abode can be a great thing sometimes and you see appreciation through the years, that is not a given.Here's a great asset: Something you create or purchase that generates enough income to cover all expenses, plus some, plus appreciates in value over time. No, your car doesn't count.Now, without contradicting a single idea you've just been drug through I will say that spending real money (cash) on home ownership can be an excellent, fulfilling and wise venture. There is something about calling a place your own, and in todays market the potential for appreciation is excellent!So go for it, if you've got the cash, or the 'guts' for a mortgage of some kind, have done your research, know the market, are ok with the fact that it may or may not appreciate in value, buy your home!Two books have reinforced my opinions on this:-'Rich Dad, Poor Dad' by Robert Kiyosaki-'The Millionaire Next Door' by Thomas StanleySo when I review my investments, if it's ok with you, I will leave my home's equity out of those figures.Do you?