[throwaway1105q]

Housing can be an asset and a basic right. The rights based housing just isn't in the center of a capital city. Also, do you mean housing ownership, or just housing? People can be housed in houses they don't own too - and it's probably better if it's owned by the municipality.

[mrcode007]

An asset produces cash flow. Primary residence can only be a speculation device because for a majority of people it does not produce a cash flow. Instead it produces expenses.

[s1artibartfast]

nonsense. A primary residence obviously provides utility in the form of shelter for the owner.

No assets directly produce cashflow, whether they are factories, tractors, or tools.

[mrcode007]

Utility is not an asset. When you grow up with your parents they provide shelter, you get a utility of it. No asset for you. Majority of assets produce cash flow (e.g. licensing software - IP asset, renting real estate to someone - you get monthly rent, bond - coupon payments, stock - you get dividends, etc)

[throwaway1105q]

Assets don't have to produce any cash flow. Most popularly, gold. Stocks that provide stable dividends are also less and less usual.

Assets can just hold their real value compared to inflation and that's useful enough - even losing value slower than inflation is still good.

[mrcode007]

FASB defines an asset as:

“A present right of an entity to an economic benefit”.

“Essential to the definition of an asset is a right to an "economic benefit" —the capacity to provide services or benefits to the entities that use them. Generally, in a business entity, that economic benefit eventually results in potential net cash inflows to the entity. In a not-for-profit entity, that economic benefit is used to provide desired or needed goods or services to beneficiaries or other constituents, which may or may not directly result in net cash inflows to the entity.“

It also says “incurring a cost to acquire an item does not in itself qualify an item to meet the definition of the asset”

https://www.fasb.org/Page/ShowPdf?path=Concepts_Statement_8-...

[throwaway1105q]

Not sure how is an accounting book relevant. I'd rather ask a tax consultant - the definitions are slightly but significantly different.

Anyways, even by your book's definition - later sale for a higher price is economic benefit, protection against inflation is one too.

This link considers your viewpoint too: https://www.investopedia.com/terms/a/asset.asp

[s1artibartfast]

I think you have a very skewed perspective of assets, let alone physical assets (which housing is).

A store that owns its own real estate isnt generating cashflow with it. This is the equivalent to a Homeowner living in a home.

If you are deadset on using intangible assets, it is the same a company holding a drug patent and producing the drug. Cashflow comes from sales, not the patent.

[fragmede]

an investment property with a renter in it produces rental income for the landlord, and cash is currently giving me 5% returns for just sitting in the bank.

[s1artibartfast]

I guess I wasnt very clear. I meant that generating income isnt the definition of an asset.

A house is an asset if you have a renter in it or not. It can also be utilized to generate income.

[fragmede]

oh that makes sense