Nikhil Kamath, cofounder of Zerodha, has bought a house after years of advocating renting.  In his podcast, he discussed the downsides of renting and the illiquid nature of real estate.  Kamath hig...

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- **Nikhil Kamath**, co-founder of Zerodha, has bought a house after years of advocating renting.
- In his podcast, he discussed the **downsides of renting** and the **illiquid nature** of real estate.
- Kamath highlighted **high stamp duty costs** and **arbitrary pricing** in real estate.
- He compared real estate to **stocks and gold**, emphasizing their **higher returns**.
- Kamath criticized the **negligible returns** from buying and renting properties, especially with **inflation and interest rates**.

Source: [The Times Of India](https://timesofindia.indiatimes.com/technology/social/zerodha-co-founder-nikhil-kamath-shares-this-disadvantage-of-renting-a-house/articleshow/114371073.cms), [Abp News](https://news.abplive.com/business/zerodha-nikhil-kamath-shifts-stance-buys-his-first-house-renting-vs-buying-debate-1725361)

Nikhil Kamath's Shift: Renting vs Buying Debate

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Nikhil Kamath's Shift: Renting vs Buying Debate- Grapevine

- **Nikhil Kamath**, co-founder of **Zerodha**, surprises many by buying a house despite his preference for renting.
- Kamath discusses the **uncertainty** of renting and the **practicality** of homeownership on his podcast **WTF**.
- He remains critical of real estate as an investment, citing its **illiquid nature** and high **stamp duty**.
- Kamath prefers **gold** for financial security and highlights the **volatility** of luxury property markets.
- He doubts the profitability of buying property to rent out, noting **low returns** compared to inflation and interest rates.

Source: [Times Now News](https://www.timesnownews.com/business-economy/industry/nikhil-kamath-buys-first-house-but-why-doesnt-zerodha-co-founder-like-real-estate-as-an-investment-article-114389865), [News 18](https://www.news18.com/viral/strong-advocate-of-renting-zerodhas-nikhil-kamath-finally-buys-first-house-9092030.html)

Zerodha Co-Founder Nikhil Kamath Buys First Home

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I was thinking about this few days back...Today a swiggy employee validated my thoughts so posting here.

Layoffs are mainly in cream jobs(20-30% which is hardly 2-3cr source tax web) and in India mainly home loans or highly consumable loans like car or PL are taken by White collars...As per labour law, we ain't protected like in Korea.

So, if someone or let's say a major chunk loses his or her job then how the system will absorb this default?

Some data...

Fy23 Home loan Size is 20 lac crore or $250B (15% of total loans disbursed by amount)

2030 it's about to touch $1T

Cagr 23% in HL growth 📈

What if defaults rise in dual digit?

Plus exorbitant hike in flat price like literally greater Noida West have 5lac unsold flat but still 10lacs worth flats are being sold at 40-50lacs (poor quality and seelan issues after a month)

PS - Usa and China have seen this. (2008 and ongoing in China)

Home Loan Crisis in India 📈

Senior Consultant

Please stop patronising everyone to invest in SIP instead of buying a home. Because if in the end, you need to buy a home only then it’s better to buy now instead of waiting for your corpus to grow 5 Cr. 

Buying home should always be your priority.

To all finance influencers

Engineering Manager

Nikhil Kamath wants to know my location 😂

Product Manager

He takes U turn on everything he says.
Hours of gyaan on podcast and then doing what is advantageous for him.
This effects a lot of young people

High time to stop trusting these influencers

Considering the crazy high rent these days(talking about localities in Bangalore), what makes more sense keeping aside the emotional aspect. Buying a house or renting one?

Side Note: I have looked at a calculator by Ankur Warikoo, but I don’t agree to the calculations made.

Buy or Rent a house?

Customer Success

Buying a house vs renting

Consultant

Hi everyone,

I’ve been considering the decision of whether to buy a flat in Bangalore or continue living in a rented apartment, and I’d love to get some advice from you all, purely from a financial perspective.

On one hand, buying a flat comes with long-term benefits like asset ownership and potential price appreciation. But on the flip side, it requires a hefty down payment, long-term loans, and associated costs like maintenance, property taxes, and registration fees. Also, with interest rates and real estate prices going up, I wonder if it’s the right time to invest.

On the other hand, renting provides flexibility with lower upfront costs. However, there’s always the reality that rent increases over time, and there’s no asset to show for it in the long run.

I’m leaning towards renting for now, as it seems more flexible and financially less binding in the short term, especially with real estate prices in Bangalore being so high. But I’d love to hear your thoughts and experiences!

What do you think? Is it better to take the plunge and buy a flat, or is renting the more financially sound decision right now?

Looking forward to your advice!

Thanks!

Seeking Advice: Buying a Flat vs Renting in Bangalore (From a Financial Perspective)

Software Developer

Considering the ongoing debate between renting and buying a flat, I've noticed many financial influencers suggesting renting and investing in mutual funds. However, there's a strong emotional aspect to owning a house, especially post-marriage and kids. What factors should one consider before purchasing a flat in metro cities like Hyderabad or Bangalore? Personally, I've contemplated buying multiple times, but after analyzing my finances, I've hesitated. I'm currently leaning towards ensuring my net worth covers at least 60% of the flat cost when making such a decision. In the long run, I believe the interest earned on my net worth could potentially cover EMIs during challenging times, like job loss or unforeseen circumstances. For instance, if I opt for a 2 Cr house, I'm considering a minimum net worth of 1.2 Cr across various asset classes like Mutual Funds, Stocks, PF, PPF, NPS, SGB, and more. What are your thoughts on this? #MiddleClass :-P

Buying vs Renting a House

Welcome to Software Engineers's Private Community

I want to buy house, my package is around 15LPA but a  good 2bhk flat in the apartment will cost 1.4crore, for me it looks like impossibile with my current salary. I am totally stressed out with this.

I need your suggestions.

Nikhil Kamath's Shift: Renting vs Buying Debate

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