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EEVblog 1430 - Rent vs Buy - My $400,000 MISTAKE!

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thm_w:
Dave goes through the real calculations of what it ultimately cost him to rent an office vs buying an office back on 2015.
And on the importance of being your own bank, compounding interest reduction, paying off your loan early, and offset accounts for cash flow benefits.

golden_labels:
The video has a “it was a mistake” vibe, but that’s not right. That’s a nice story of how things went worse than they could, but the decision may only be judged from 2015’s perspective. You could as well put a third option there: investing $50k in a startup that increased its value 50 times since 2015 and claim you lost millions! No, you didn’t, because in 2015 you had no information you have now. Unless in 2015 you already considered the need to have a larger office and knew the property value will increase by more than 100%. ;)


thm_w:
Its a way to one-up Rossman and show some interesting numbers.

Most companies I've worked at have been leasing so long they've probably paid the cost of the place already. But good luck pushing that idea to investors. Companies don't like to invest in things up front, they prefer to have monthly expenses.

nctnico:
This video could really do with a 1 minute executive summary  >:D

Monkeh:

--- Quote from: golden_labels on October 18, 2021, 03:19:53 am ---The video has a “it was a mistake” vibe, but that’s not right. That’s a nice story of how things went worse than they could, but the decision may only be judged from 2015’s perspective. You could as well put a third option there: investing $50k in a startup that increased its value 50 times since 2015 and claim you lost millions! No, you didn’t, because in 2015 you had no information you have now. Unless in 2015 you already considered the need to have a larger office and knew the property value will increase by more than 100%. ;)

--- End quote ---

On that note, I made a multi-million dollar mistake years ago by dismissing Bitcoin as little more than a curious fad.

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