I am going to try to answer this a different way.
If you purchase a car, it is an asset. It has positive value. Someone will buy it from you for money.
Now Rich Dad Poor Dad would label the car as a liability. I would label it as a non-income producing asset. I do understand his argument that you want to focus your wealth on income and revenue producing assets.
Let’s take this one step further. I got a loan on the car instead of paying cash. Does this change what the car is? I would say no and even in the investment community the answer would be no. For the loan is called an ABS or Asset Backed Security. In other words, the car loan is backed by an asset (the car).
I believe this parallels a house. The mortgage is a liability that is securitized by an asset (the house).
Also, if the house wasn’t an asset, do you thing the bank would loan you 6 figures on your good name?
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