A house is a big liability

@scheng1 (24649)
Singapore
January 19, 2016 7:14am CST
A house is a big liability. The bigger the house, the more expensive your house, the bigger a liability for you. Most of us do not buy our house with enough cash not to take up housing loan. When we are servicing the mortgage, the house is not ours. The house is bought on borrowed money, and the bank has the right to seize the house. When we pay off the house, the house is not 100% ours too. We have to pay the tax on the house. If we fail to pay the property tax, we can go to jail or the government can seize the house. A house that we live in is always a liability because of the maintenance cost too. When the toilet chokes, or the roof leaks, or the wall needs painting, we will have to fork out money for it.
2 responses
• Philippines
20 Jan 16
I think it is better than being homeless and sleep on the streets. We are still bless not to suffer with extreme cold or heat outside. We still have a little privacy at home, and we can still have a great rest no matter how sometimes it is a bit noisy at home, but you feel safe than sleeping somewhere else. Let us just be thankful on what we have.
@scheng1 (24649)
• Singapore
20 Jan 16
A small house is better than a big house. At least with a small house, you can pay it off early, and you do not to worry about the bank taking the house away.
@yukimori (10193)
• United States
19 Jan 16
Is it really, though? While making payments to the lender, you're building equity in the property. You don't have to talk to a landlord to get permission to repaint anything. Don't like the color your walls are? Want to go bold and paint a few walls orange? Go down to the hardware store and grab some paint to do it! Sure, you're responsible for repairs, but those are expected costs. If you're smart about it, you set enough money aside each month to cover big expenses when they come up--and you had a home inspection done before buying to make sure there was nothing major that was going to be an issue really soon. Then again, I'm one of those people who's not afraid of tackling home improvement projects myself... so I'll happily go to YouTube, Pinterest, or a blog with good tutorials to find instructions on how to fix a problem that comes up. After watching my parents (who were in their 60's and 70's at the time) do all the framing, sheetrock, roofing, and so on in their home while building it, I really feel like there's no excuse to hire contractors to do things that I could do myself.
1 person likes this
@scheng1 (24649)
• Singapore
20 Jan 16
A house is definitely a liability. No matter how you see it, as long as you need a place to stay, you are best to own your own house, but it is better to have a small house, and you can pay it off soon. Never think about building equity in your own house. It is better to buy 2 small ones, and rent out the other while you stay in one of them. In this way, you are building equity with the rent that tenants pay.