Is buying or renting a house better? Click to know as Investor and CEO clash over housing choices

The age-old debate of renting versus buying a home has recently been reignited on social media, featuring a high-profile clash between an investor and a CEO. Kiran Rajput, an individual investor, sparked the conversation with a provocative tweet suggesting that the middle class’s enduring aspiration to own a home might be hindering their financial progress. “Fifty years ago, the middle class aspired to own a house, and this aspiration remains unchanged today, often keeping many in the middle class from progressing further,” Rajput stated.

This tweet quickly gained traction, attracting over 150,000 views and fueling a heated debate. Aman Goel, co-founder and CEO of GreyLabs AI, responded sharply to Rajput’s viewpoint. “Nothing is worse than being kicked out by your landlord just because someone else paid them 10% higher rent. Don’t listen to Finfluencers. Being able to live under your roof is a privilege. If you can afford a house, buy one. Just ensure that you don’t get into a debt trap,” Goel countered.

Rajput later elaborated on his stance in another post, saying, “Not having your own house is a social stigma, a taboo. Few courageous middle-class individuals break those boundaries and elevate their families from middle-class struggle. I get abuse when I say: I don’t have a house. By the way, I am not a finfluencer; I am here to share my failures and learnings.”

The discussion highlighted a variety of perspectives. Supporters of buying a home argue that ownership provides stability and peace of mind. One user remarked, “House is not about money only. House is about relaxing and knowing that even if you lose your job or the share market tanks by 60%, you have a place to live.” Another added, “People who have lived in rented flats understand how crucial it is to have their own home. Owning a house provides peace of mind that cannot be measured in terms of percentage returns.”

Conversely, some voices aligned with Rajput’s view, emphasizing the flexibility and potential financial benefits of renting. A user pointed out, “Isn’t that an outlier event? I have lived in rented houses all my life, never had to experience anything like that. Buying a house only makes sense if you plan to live in it for at least 10 years. My career requires me to switch cities, so renting makes more sense for me.”

The debate also drew comments questioning the motives behind financial advice. One individual criticized financial advisors, saying, “One thing that I have learned bitterly and luckily very early – never to believe what the financial advisers and so-called wealth managers recommend – it’s all about their commission and not your interest.”

As the conversation unfolded, the complexity of the rent versus buy decision became evident. The escalating property prices in major cities have led many to choose renting as a more viable option. Yet, the emotional and psychological factors associated with owning a home continue to drive the debate.

In the midst of this ongoing discussion, Goel’s and Rajput’s statements underscore the broader conflict between financial pragmatism and the quest for personal security, illustrating how deeply personal and subjective the choice between renting and buying a home can be.