DeafInvestor
PARKED
- Joined
- May 23, 2012
- Messages
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$25
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House Asset
Which do you consider an asset when a person borrows from the bank to buy an House on balance sheet?
100K House = 80K Mortgage + shareholder equity 20K
Had an argument with friend who's financial intelligent as it seems said asset comes from shareholder equity as the house is always considered an asset. I thought the bank gets the asset until it's paid off? Where do you put down shareholder equity in balance sheet? Also mentioned the house is always an asset but I thought its not an asset unless it's produce an income from the asset.
When the person still pays the mortgage is always liabilities but the person gets equity each time they pay the mortgage and where does equity fit in balance statement?
I just want clear explanation so I can discuss better with my friend because I know House is not an Asset. Hope you guys help me out!
Which do you consider an asset when a person borrows from the bank to buy an House on balance sheet?
100K House = 80K Mortgage + shareholder equity 20K
Had an argument with friend who's financial intelligent as it seems said asset comes from shareholder equity as the house is always considered an asset. I thought the bank gets the asset until it's paid off? Where do you put down shareholder equity in balance sheet? Also mentioned the house is always an asset but I thought its not an asset unless it's produce an income from the asset.
When the person still pays the mortgage is always liabilities but the person gets equity each time they pay the mortgage and where does equity fit in balance statement?
I just want clear explanation so I can discuss better with my friend because I know House is not an Asset. Hope you guys help me out!
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