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Robert Kiyosaki Serie

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Your House is an Asset (KTLA5 News) It's no secret that the California housing bubble has popped with hard chips spread wide Real Estate expert, Robert Kiyosaki, predicted all of this would happened back in 2005 but most people didn't listened. Is the biggest financial bubble in the history of the world. I'd have the benefit of travelling the entire world. All markets go up, all markets go down, so the market will come back; But, right now, is going to be a slight right down, and might be down for a long time. Simply, because is going to take more for a downpayment because nobody trust anybody anymore. And the next big sacred cow is: Your Home is an Asset. In 1997, I wrote in "Rich Dad, Poor Dad": YOUR HOUSE IS NOT AN ASSET; and at that point, every realtor, stopped sending me christmas cards. Because your home is NOT YOUR asset, your home is, actually, YOUR BANK'S asset; if you can read a financial statement. -So Kenay you on lots of real estate? -Yes -Is your home an asset? - No, no my personal residence. -A lot of people are in trouble today? -Yeah, it doesn't produce any revenue. (INCOME, EXPENSE --- ASSETS LIABILITIES) You know, I pay the bank every month, it's the bank's asset!! and what everyone's talking about: "my house is appreciate in value", again, that's Capital Gains vs. Cashflow. And what the people are finding out now, that the real estate market is crashed, this is all over the world: the value of their home has been sucked out. And so now, somehow people's upside down, because they really found their house is a liability, because they still have to pay the bank on the mortgage. Let's say you bought a house for $200,000... they still owe a $180,000 but the house is only worth a $100,000, now. And they're now finding out that your house is not an Asset, it's a LIABILITY. And I'll tell you, I'm the largest originator of FH Change being ones in the entire country, out of everybody: I rent!!..........What this that tell you? -But as an accountant, is a house an Asset? -No, you know, the bank considers it, they'll say is an asset and the financial planners would say is an asset but the reality is, it's not an asset unless it's putting money in your pocket. And a house strings money from your pocket. Well, if you own a house, you get a deduction for the interest. Yes, but it's money out of your pocket!!!! And the best you can get is 40 cents on a Dollar; ok?. So you give them a Dollar and you get 40 cents back, you're still out 60 cents. It's not difficult math!!. Your home is shelter, it's a place to rise a family but it's not an asset, you'll ever going to make money of it. -voice back: It's not a financial asset. No, you might make money in an uptrending market but, today, the market is trending down. And that's why in 1997, when I said in "Rich Dad, Poor Dad": Your House Is Not an Asset, was heresy. Now, people say: "oh, my God, I sould've listened to him" So, I'm not saying: Don't Buy A House!!, I'm saying just don't be financially ignorant and call your house an asset if it's taken money out of your pocket. Because Kim and I own two houses: one here, in Arizona, and one beautiful beach house in Hawaii and they're our biggest liabilities. People did think, specially in the high times, you know , when the markets were high, they did think their house was an asset, and people, even, if they had their mortgage paid off, they were borrowing against their house and putting it into the stock market or wherever they are putting it, so, not only were they getting crazy mortgages but they were taking money out against their house and second, third mortgages. And they were doing other things like vacations and.... -boats- boats and cars... and other things like this and the reality is, the reason they were doing that, is because they got to deduct the interest off their taxes. And so, they thought: "ohh well, this is ok because I get a deduction" Just because you get a deduction, doesn´t make it a good thing to do. Or one of the big mistakes people make, is over-improving their house: you know, they put in over a 50,000-dollar swimming pool and it brings them 20,000 dollars worth of value. Well, the way I looked at it is, you just bought a 30,000-dollar baby-sitter!! 50% of the mortgages in Reno are "underwater", meaning that the mortgage is greater than the value of the property. And this affects the whole community!!. Because people aren´t able to sell their homes and move to a place where they can get a better job, The neighbours aren't goint to sell their house because values are so far down. So this is affected entire communities and again... we've heard people say that your home is an asset. We're taking here about financial education, and this is one of the biggest financial lessons that our country's had to learned... ...a very hard way!!, that your home is not an asset!! This is happened before.... and what's gonna happen is: new loss of come in, new credit will be losing again, here.. years from now and prices will come up again and people will do it again. It's about a 20-year cycle, as in anything. The point here is this: "This, is the best time to be buying Real Estate". If you are a first-time home-buyer, this is your best time; just don't call it an asset. You know, this is the best time to get in back in the market and that's why it takes financial education. The reason I'm in real estate, is for one reason: it's DEBT one of the easiest assets to get debt on: is real estate But if you're gonna use debt, you gotta be highly financial intelligent. Otherwise, if you're not intelligent, just keep calling your house an asset. We're talking a lot about ASSETS, and there are 4 primary asset classes: 1) is BUSINESS, as an entrepreneur you own a Business. Number 2 is REAL ESTATE, and we love rental properties that casflow: Real Estate, that puts money in our pocket every single month. Number 3 are PAPER ASSETS: stocks, bonds, mutual funds, savings. Most E's and S's are in Paper Assets today (because they are easy to get into) And number 4 are COMMODITIES: gold, silver, precious metals, oil and gas. For Robert and I, we're in Business. We're in Real Estate, we own hundreds of properties in real estate. We have Paper Assets and we have Commodities. So, for us, when we talk about DIVERSIFICATION: we're in all 4 asset classes.

Video Details

Duration: 5 minutes and 57 seconds
Country: Mexico
Language: English
Director: Robert and Kim Kiyosaki
Views: 187
Posted by: l.a.gomez on Aug 21, 2010

Robert Kiyosaki nos comparte una serie de 8 videos, en donde ataca directamente los mitos más arraigados ("vacas sagradas") alrededor del dinero y las ideas populares acerca de las finanzas. Videos muy reveladores que cambiaran tu perspectiva y de seguro tus ideas acerca del dinero y las finanzas Mayor información: [email protected]

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