In my previous post about how I can immediately achieve financial independence now (click here), I talked about downsizing my house. Some people may think it is due to the profit earned from downsizing. Actually, that is only 1 part of the equation. If you think harder, you will realised that your residential property (The one you stayed in without renting out) is a liability. Yes, it is the biggest liability for most people in Singapore (Maybe worldwide?).



Contrary to what your finance course taught you (If you attended one), your residential property is not an asset! You have to pay the mortgage/loan hence, money going out of your pocket. It only becomes an asset when it puts money into your pocket. The majority of us thinks that buying a house (liability) that increase in prices will make them rich. I hope you will not faint when you ......