PennyGem’s Elizabeth Keatinge explains why your house is not an asset
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00:00As financial expert Rich Dad, Robert Kiyosaki says, quote, your house is not an asset, unquote.
00:10Many see home ownership as your biggest asset.
00:12But as Kiyosaki says, quote, your house is a liability, unquote.
00:17Your house doesn't put money in your pocket.
00:19It takes money out in the form of a mortgage, utility payments, taxes, maintenance, a multitude
00:25of other expenses.
00:26Certified financial planner Lauren Anastasio tells HuffPost, quote, I often hear from members
00:32who greatly exaggerate the returns they've experienced on real estate, especially their
00:36primary residence, unquote.
00:38As the site further highlights, at the most, a home is a forced savings account.
00:43And the, quote, Case-Shiller U.S. National Home Price Index over the last 20 years shows
00:48prices increased just 3.8 percent on average, unquote.
00:53Inflation was 2 percent over that period.
00:55So is home ownership really the American dream, or are you better off renting?