cedarapple

cedarapple t1_j6p8bnz wrote

The problem is that a lot of these "tech" companies are not making much (if any) money at all, particularly those companies that went public in the last couple of years. Many tech companies are wildly overvalued (i.e., Salesforce at a P/E of 600). Now that the cheap funding is gone they have to reverse the massive hiring spree that they went on if they want to survive and there's plenty of deadwood to cut.

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cedarapple t1_iwvzian wrote

You are not "throwing away rent", you are renting a place to live in. When you buy a property you are making a mortgage payment in order to have a place to live in. In the first ~10 years of a mortgage nearly all of the payment consists of interest (sort of like paying rent to a bank for the use of its money) with a small portion of the payment going to principal (equity).

When deciding whether or not to buy you should determine if renting is less or more expensive than buying a roughly equivalent house with a mortgage payment (taking into account higher maintenance and insurance costs for owners). Also consider the increased flexibility that renting offers for relocating if necessary.

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