Originally Posted by
Sherry
Relax la. We are just trying to clarify basic accounting concepts. Nobody is trying to "pretend" to be a HNWI and join your ranks. What is the point of being so status conscious in a forum? It is better to respond with points that have more technical substance.
Banks are of course interested in investable assets as that's where they make their money. But from a personal perspective, one should worry about the value of one's home. If it goes down one can end up with negative equity (as the outstanding loan remains unchanged); if it goes up one can have more choices when upgrading or downgrading. It is strange that this commonsensical position can be controversial.
The only people interested in talking about accounting concept here are those who doesnt own investment property or investment asset.
If you have those 2, you will understand that a home is not your investment even though its a positive asset. In investment, we have things like ROI or ROE, so please dont try to mix them together. And it is not by chance why banks doesnt take into account your home as part of investment assets.
Like I said before, you can go invent whatever account concept you like to satisfy your needs, but please dont try to reinvent the definition of investment assets of the real world just because of personal circumstances.
"Never argue with an idiot, or he will drag you down to his level and beat you with experience."