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Properties/Estates » Land: An Asset and a Liability by: TYMartins(f) .:. Wed, 09 Sep, 2020 - 04:58:07:pm GMT

Well, for many of us who did Business Studies on school as well as Commerce or Financial Accounting would have heard almost everytime that LAND IS AN ASSET. This is true but at the same time not entirely true. How? You ask.

Land has been know to be a appreciative asset to be owned by many to be financially free. Financial freedom is the goal when acquiring "assets". However,land can be both an asset and a liability

Land is only considered an asset when it pays you. Yeah! WHEN IT PAYS YOU!. If you have a piece of land that you still spend on or pay for, it's not to be considered an asset but a liability.

Land only becomes an asset when you sell it to earn money or when you rent it out and receive money for it. If you own a house and you live in it, it is still a liability to you currently because, you pay for everything that comes with living in that house, it takes from you. However, if you own a house that is being lived in by another who pays you for it, it is considered an asset.

In short, Robert Kiyosaki says, anything that takes from you is a liability or an expense but, anything that adds to you is an asset. An asset should be able to sponsor your lifestyle and your liabilities.

Think about it .

**With God nothing is impossible**

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Re: Land: An Asset and a Liability by: Wonders(f) .:. Sat, 27 Mar, 2021 - 04:24:14:pm GMT

I believe land is mainly an asset not a liability. Here are my arguments;

Land is a long term asset, not a current asset because it is expected to be used by the business for more than one year. Current assets are a business's most liquid assets and are expected to be converted to a cash within one year or less.

Land is one of the longer term investments a business can own, it is categorized as a fixed asset on a business balance sheet, because it is typically isn't expected to be turn to cash within the span of a year.

Land is considered to be an asset with a longest life span.

Land can not be depreciated meaning you can't account for its cost by gradually reducing its value over its useful lifespan, as a result of that the useful lifespan of land is considered to be basically eternal.

Land is considered to be least liquid asset a business owns. It is classified as a fixed asset on your balance sheet, therefore again and again I am saying life is an asset and not a liability.
**Wonders**

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Re: Land: An Asset and a Liability by: Queen(f) .:. Mon, 09 Jan, 2023 - 10:31:19:pm GMT

Obviously, land is an asset. I don't need to go for a lecture to know that land is an asset. I don't know how or were to start explaining how land is an asset.
Land infact is a great asset. It even appreciate over the years.
**It is well**

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