For many people, buying a home is the ultimate dream and one of the biggest goals in life. However, property prices and rentals have increased significantly in major Indian cities in the last five years, dashing people’s dreams. Recently, Bengaluru has topped the list as the hottest residential market in the country, says a Bloomberg report.
Sharing his thoughts on the issue, Deepak Shenoy, founder and CEO of Bengaluru-based Capitalmind, called homes a ‘terrible investment’, and said most people buy property because they want a ‘warm fuzzy feeling of ownership’.
”This buy vs rent will never end, like it’s some kind of religion. no one cares. Most people want that warm fuzzy feeling of ownership, so shopping is cool. Like a car,'” he tweeted. He added that some people consider buying a home as an investment, but “homes have mostly not done well financially over the past decade.”
”Houses are terrible investments, like most cars; But it is overshadowed by a warm fuzzy sense of ownership most of the time. This includes the ability to change the structure of your home as per your choice, apply for a passport with a “permanent” address, no need to deal with rents and brokers etc.,” he said.
Check out the tweet here:
This buy vs rent will never end, like it’s some kind of religion. no one cares. Most people want that warm fuzzy feeling of ownership, so shopping is cool. kind of car.
Some people confuse this with investing, giving random examples of both up and down. Or quote higher rent or …
— Deepak Shenoy (@deepakshenoy) April 5, 2023
He then pointed out that the same logic applies to buying a luxury car.
“You can never tell why a Mercedes (or Porsche) is a good idea, but it’s not evaluated on the boss how well it gets mileage, and the boss big thing is that you can take an Uber and It’ll get cheaper forever. It’s appraised at the frick, I have a goddamn Mercedes. That warm fuzzy feeling justifies any EMI, but only if you can afford it,” he said.
Mr Shenoy’s tweet has now triggered a debate and has received mixed reactions. One user said, ‘Perspective is always great, but not a blanket statement. Can be harmful to those who become “affected”.
Another commented, “Totally agree.” Man is irrational and constantly jostles for status and recognition. That’s why we still buy real gold jewelry or use fragile glassware.”
A third said, “The homeowner needs to look beyond investment. Homeownership is good for the economy. Homeowners (1) demand high-quality home furnishings, (2) want stability and (3) invest in children. Providing affordable housing for young couples is essential for India’s development.” Fourth added, “Endless debate. I know its very comfortable to rent a couple. Another with unwell parents living with them chose to buy. There is no right or wrong. Just do what works for you.
A fifth summed up the buy versus rent debate by saying, “It. This is a comparison of apples vs oranges. To each his own, in whom happiness is found.