I want to ask something. People always ask me why I rent and "waste money" instead of getting a mortgage etc.
I explain to them that I put most of the money I make into my company, and have a greater ROI than if I put the money into real estate. But, since I have to live somewhere, I rent.
Yet, I am not sure this argument is correct. If I had money for a down payment, perhaps the strategy of getting a mortgage would win in the long run. So, instead of getting into the details, I usually mention I also like to be able to change apartments every year or so.
What are your thoughts - those of you who have now, or have had, growing startups?
I'd look at it from a different angle - you spend a lot ton of time and energy on your company and don't want to have to deal with issues that come with home ownership - it's easier to just call the landlord with any problem that pops up.
Plus, if you decided to relocate to a different place there is a significant cost of selling, which would wipe out any modest gains in appreciation.
We all have our own preference when it comes to investing. One big factor in investing is diversification. Well, putting all your eggs in one basket is a risky business.
I explain to them that I put most of the money I make into my company, and have a greater ROI than if I put the money into real estate. But, since I have to live somewhere, I rent.
Yet, I am not sure this argument is correct. If I had money for a down payment, perhaps the strategy of getting a mortgage would win in the long run. So, instead of getting into the details, I usually mention I also like to be able to change apartments every year or so.
What are your thoughts - those of you who have now, or have had, growing startups?