Why a house is not an asset Robert Kiyosaki?

In personal finance classic “Rich Dad Poor Dad,” author Robert Kiyosaki notes that houses should be viewed as a liability, as opposed to an asset, and points out that it’s not a given that a home will appreciate in value.

Why real estate is better than other investments?

On its own, real estate offers cash flow, tax breaks, equity building, competitive risk-adjusted returns, and a hedge against inflation. Real estate can also enhance a portfolio by lowering volatility through diversification, whether you invest in physical properties or REITs.

Does Kiyosaki own stocks?

That protects the deposits against corporate malfeasance and the other problems that Kiyosaki fears in pension systems. And yet he is railing against all retirement plans, and the ways they are invested. Kiyosaki isn’t buying mutual funds and stocks because he’s “a professional investor.”

Is buying a house a liability or an asset?

At a very basic level, an asset is something that provides future economic benefit, while a liability is an obligation. Using this framework, a house could be viewed as an asset, but a mortgage would definitely be a liability. Most people who own a home have a mortgage but also have equity built up in that home.

Which is the major disadvantage of real estate investment?

The biggest disadvantages of real estate investment is high capital requirement. Because of high capital requirement, buying and selling of property is laborious. This is one reason why so many people resort to loans to buy real estate property.

How does Robert say the poor and middle class buy luxuries?

The poor and middle class buy luxuries with their own sweat, blood, and children’s inheritance.”

Who is Robert Kiyosaki and why is he famous?

Robert Kiyosaki is one of the best-known names in the personal-finance world today, and he’s got a lot to say about investing in the current environment. ,” Kiyosaki has attracted millions of followers who want to boost their net worth.

Why doesn’t Kiyosaki own any foreign real estate?

However, Kiyosaki says he doesn’t own any foreign real estate because “I have to know the underlying economics” of the area, and he wouldn’t have enough familiarity with the situations in other countries to be comfortable investing there.

What does Kiyosaki say about the price of oil?

Kiyosaki owns oil wells, too. He remarks on the price of gasoline that “as a consumer, I’m upset,” but that when he notes the price of oil, “as a producer, I’m happy.” In fact, it might be pretty hard for him to lose money on the oil trade.

What ETFs does Kiyosaki invest in?

Though Kiyosaki declined to name the specific ETFs in which he’s invested, ETFs such as the allow people to invest in those previous metals. Kiyosaki owns oil wells, too. He remarks on the price of gasoline that “as a consumer, I’m upset,” but that when he notes the price of oil, “as a producer, I’m happy.”

https://www.youtube.com/watch?v=KmxdhSOe51k