It is definitely not. Your house is legally owned by the mortgagee, a financial institution. You are only the true owner of the house when you have fully paid off the loan. Moreover, an asset is capable of producing an income. As long as you are paying the monthly installments, it is actually a liability.
When you have fully paid off the loan and the title transferred to you and you are the rightful owner of the house, is it an asset? It is still not.
1. The house is not producing an income for you because you are living in it.
2. You have to maintain the house to prevent leakages, breakages, peeling of wall paint, theft, burglary and …
3. You have to pay assessment and quit rent
4. You have to buy property insurance.
5. Sure, your house appreciates in value over time, as long as you not selling the house, it is not an asset.
6. Even if you have sold the house at a very much higher price than before, you don’t gain anything because, very likely, you have to pay even more for a similar property.
Do not be disheartened:
• A house is a home of your own and nobody can chase you out of it.
• It gives you peace of mind because you are debt-free
• As long as you are able to maintain the house everything is fine.
So, do you still think your house is an asset?
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