Rent went up from $1600-$2500 in a couple of years. My mortgage remains almost fixed except for property taxes.
So I think it’s a decent risk. My plan is to moonlight to a minimum delightful product. Once I have validation, and my feet touch the floor, I can quit my job and go
Entrepreneurship I agree is all about managing risk/reward.
You will get an infinitely higher return on reinvesting money in yourself than putting up a deposit to purchase a pile of bricks.
$50k in the bank might give you 5 shots at starting a $100-200-300k a year business.
And many would argue that places with skyrocketing property prices are going to run into significant issues in the future (if they aren't already at breaking point, hi bay area).
You'll realise it's almost always easier to make money from a successful business (no potential constraint on earnings if you solve a large enough problem) than it is working a job (time limited, limited opportunities for promotion based on age or company, etc)
But I agree, not everyone is made to be an entrepreneur.
AAMGF tech behemoths make almost a million per employee, yet the median salary is 15% of that.
Going it along, you could probably build a better product in another niche market and take a bigger cut. It’s a risk/reward bet.
Owning a house also generally means low liquidity (should you want to sell), money going to repairs that you could otherwise just forward to the landlord and the requisite of putting up a deposit (money that can't be invested in say the stock market -- meaning you lose out on yield).
"Citation needed", also, it varies a lot between places.
1) Australia, but we started it in Canada.
2) Again true, lots of friends opted to buy houses etc, but i felt it was going to limit me so i avoided this form of debt, and thankfully so as servicing it would have probably prevented me from starting the company.
3) Affluent co-founders in my case.
4) I was 24. Just old enough to know enough, young enough to be dumb enough to try + have the freedom to try.
I'd also add a 5th) You need a solid chunk of savings (Ideally a year or two worth). I dropped my income by 76% to work on the startup and saw no increase from pre-startup income for a while thereafter. But 6 years later my salary income (forget the buyout portion of money) was up 1191% from where it was before i left my job.