Property and Real Estate

Assets and Property

An asset can either be a liquid asset or a fixed asset.

A liquid asset could be something like money or other currency that can be readily exchanged for something else.

A fixed asset is something that is not readily exchanged for currency, usually either capital equipment or property or real estate.

What makes it an asset as opposed to a posession or even a liability?
An asset could be said to be something that holds or even gains in value, property or real estate generally has been one of the most worthwhile assets to own. while there may be fluctuations in the market and in the price of property, over a longer term, say 5 to 10 years, it can be seen that property values have historically always risen. Of course over the shorter terms, 1 to 5 years, buying and selling real estate within that period will probably be a little bit of a risk.

A posession doesn't necessarily hold any monetary value, although it may be of sentimental or other type of value to the owner.

A liability is something that costs money or something else of value just to have it.