Asset

Definition: An asset is a resource or right with economic value owned or controlled by a person or organization.

Example

An investor lists cash and a rental property as assets, while the mortgage is listed separately as a liability.

Keep the distinction clear

Property value and owner equity are different. Equity reflects the owner's interest after relevant debts; the existence of an asset does not mean it is free of liabilities.

Related terms

Equity · Capital Asset · Liquidity

Keep studying

Income Approach: NOI, Cap Rate, Property Value, and Cash-on-Cash Return

References: California DRE: real estate glossary

Pronunciation (US): AS-et (capitals show stress)

Pronunciation reference: Merriam-Webster