Buy or Rent - A million dollar question

Buy or Rent?

We will guide you to a smarter emotional decision

“I hate the illiquid nature of real estate. Places like this have fewer buyers and if 10 people decide to sell, then the price goes haywire and pricing is very arbitrary in nature," said Nikhil Kamath co-founder of Zerodha and a strong proponent of renting over buying, once upon a time, not long ago.

Always in the news over his off-typical views on real estate, changed his long-held stand only last week by buying his first house! And the internet broke loose with the infamous discussion to buy or rent a house in Mumbai, India’s financial capital, the birthplace of Indian cinema, a potpourri of multilingual cultural references with the highest real estate appreciation rates, once again.

While renting offers flexibility and the opportunity to invest elsewhere, buying provides long-term security and the potential for property appreciation. Balancing these factors with your financial situation will help you make the smarter choice of whether to buy or rent. Deciding between renting and buying is a personal choice that depends on your financial goals, lifestyle, and future plans. While you may get your financial food for thought from most perspectives online, Rioga Premium Real Estate Advisory will try to address the most crucial undercurrent of this decision-making, the emotional impulse. This is what makes or breaks a deal.

*The survey did not detail the quality or the size of the respondent's housing.

A Statista Consumer Insights survey conducted from July 2023 to June 2024 showed that in India, a majority of people even in the bottom 50 percent of household income bracket live in their own houses. The share of survey respondents owning a home is expected to be even higher in the top 10, top 25, and top 50 percent brackets. Conversely, the share of respondents who rent either an apartment or a house hovers between 10 and 15 percent for the higher-earning household income brackets, while 28 percent of survey participants from the bottom 50 percent described themselves as renters. Why do you think this is the case?

Simple answer: Owning a home, is a matter of pride and privilege.

Emotional answer: My parents asked me to.

Here's an excellent comparative analysis of the emotional factors that affect your choices of whether to buy or rent by INDMoney which we completely align with:

A Harvard professor finds that 95% of consumer decisions are based on emotions. Naturally, emotions weigh heavy on every lifestyle decision, mostly buying a home.

Choosing between renting and buying a home in Mumbai is more than just a financial decision; it's an emotional journey shaped by dreams, lifestyle choices, and a sense of belonging.

Same goes for Nikhil Kamath, who once openly advised against buying property due to its heavy financial commitment and limited liquidity, recently took the plunge and purchased a home in Mumbai. Kamath’s shift reflects how emotional and lifestyle considerations can outweigh financial strategies. His decision highlights the magnetic pull of owning a home in Mumbai, where owning property is a unique blend of personal fulfillment and emotional attachment.