Nikhil Kamath Buys His First House, Shifting Stance on Homeownership
Nikhil Kamath, co-founder of Zerodha and a strong proponent of renting over buying, has revealed that he has now purchased a house, shifting his long-held stance. Kamath discussed his decision in a recent episode of his podcast, “WTF is with Nikhil Kamath.”
In a candid conversation, Kamath was joined by real estate experts Irfan Razack, Chairman & MD of Prestige Group, Nirupa Shankar, Executive Director of Brigade Group, and Karan Virwani, CEO of WeWork India. Together, they reignited the debate over renting versus buying property.
As of October 19, 2024, Forbes reports that Nikhil Kamath has a net worth of $3.1 billion, placing him at 1,135th in the world. When asked about the potential benefits of homeownership, including financial strength and security, Kamath expressed disdain for the “illiquid nature of real estate,” stating, “I feel something like gold can give that to me. I hate the illiquid nature of real estate.”
Commenting on the pricing dynamics in real estate, he noted, “Places like this have fewer buyers. So, the pricing is like if 10 people here decide to sell, then everything is haywire, and the pricing is very arbitrary in nature.”
In contrast, Kamath compared the real estate market to the stock market, saying, “The stock market has more people. If in a certain company, one million people decide to sell, then it makes a significant difference.” He also criticized the stamp duty imposed on property transactions, pointing out that, “In the stock market, I can buy and sell without paying 5% to 6% stamp duty.”
The discussion further explored the profitability of buying property to rent out versus using it as an Airbnb. Kamath remarked, “I think nobody makes money from buying and renting a place,” explaining that with Airbnb, “you do not have occupancy throughout the year.”
Public reactions to Kamath’s shift included comments such as, “If you’re wealthy, buying a home or renting literally does not matter!!” One user remarked, “Wow, finfluencers have finally realised something so obvious.”
Another highlighted the emotional benefits of homeownership, stating, “Owning a house gives a sense of security and stability to the entire family. Apna ghar kaisa bhi ho, apna ghar, apna ghar hota hai (No matter how your home is, a home is still a home). And that feeling cannot be compared to any value of money.”