Billionaire businessman Nikhil Kamath recently bought his first house. Before this, he considered it appropriate to live in a rented house. Why did the co-founder of Zerodha change his thoughts about renting? What inspiration suddenly led him to buy a house? Nikhil revealed in a recent episode of WTF with Nikhil Kamath’s podcast that he has purchased his first home. He clearly expressed a shift in his views on renting versus buying a house. Nikhil also shared the biggest disadvantage of living on rent. Let’s find out what it was and what other insights he shared on the issue of buying a house versus renting.
Why Does Nikhil Kamath Prefered Buying A House Over Renting?
Nikhil Kamath reveals a major difficulty in renting a house in his podcast. He says that living in a rented house does not guarantee how long you will be allowed to stay in a particular place. You may want to stay longer, but you will have to leave the house at the landlord’s discretion. Nikhil says that renting gives a person the freedom to live in a desired location, but the question always remains how long the house will be yours.
They discussed the real estate business with Prestige Group’s Chairman and Managing Director Irfan Razak, Brigade Group’s Executive Director Nirupa Shankar, and WeWork India’s CEO Karan Virwani in the podcast. Nirupa Shankar asked Nikhil whether he considered a home as a form of security and financial strength or not. Nikhil prefers to invest in gold rather than buying a house. He said he doesn’t like the illiquid nature of real estate. That’s why he doesn’t prefer buying properties because there are very few buyers in it.
Being the right buyer at the right time and duration is crucial. Otherwise, you could incur losses. For this, the services of a broker are also necessary. The selling process takes a little more time. They prefer stocks and cash over gold, which gives you returns in a few days. Experts also believe that buying and renting is a personal challenge for an individual. A person’s circumstances can define the best decision for them, whether it’s buying a house or renting one. There is no good or bad decision when it comes to buying a house. Both situations have their limitations. Buying a house ties you down to one place, whereas renting is uncertain in terms of how long you can stay there.