A home is an asset that brings in money every month and could increase in value.
A property that you rent out is an asset that brings in money every month and could increase in value.
These two statements are correct because:
1. A home can be an asset if it is rented out, generating monthly rental income and potentially appreciating in value over time.
2. A property that you rent out is a straightforward income-generating asset, providing rental income and having the potential to appreciate.
The other statements have inaccuracies:
- A car usually depreciates over time rather than increasing in value and typically incurs costs.
- Shares in an investment portfolio do have the potential to increase in value, and many can also generate monthly or quarterly income through dividends, making the statement incomplete.
Pick 2 correct statements about assets.
CHOOSE 2
A home is an asset that brings in money every month and could increase in value
A property that you rent out is an asset that brings in money every month and could increase in value
A car is an asset that costs you money every month and increases in value
Shares in an investment portfolio are assets that could increase in value, but don't generate an income every month
1 answer