Nikhil Kamath, co-founder of Zerodha, has shifted his long-held stance on renting versus buying a home. Known for advocating the benefits of renting, Kamath recently revealed on his podcast *’WTF is with Nikhil Kamath’* that he has bought a house, surprising many. He acknowledged that while renting has its advantages, it also comes with significant drawbacks.

Specifically, Kamath highlighted the unpredictability of rental agreements, saying, “The thing with renting… is that you don’t have foresight as to when you can move out.” His experience of being forced to leave a rental property sooner than expected led him to see the appeal of home ownership, which allows for stability and long-term residence.

Kamath explained that owning a home helps avoid the hassle of frequent relocations, which became a key factor in his decision. However, despite his change in perspective, Kamath remains skeptical about real estate as an investment. He expressed concerns over its illiquid nature and arbitrary pricing, emphasizing that he prefers assets like gold, which can be easily converted to cash without significant losses in value.

In addition, Kamath criticized the high transaction costs associated with real estate, such as stamp duties that can reach 5% to 6% of the property value, contrasting this with the absence of such costs in share trading. He also raised doubts about buying property for rental income, stating that returns are often minimal when considering inflation and interest rates.

Kamath was joined by Irfan Razack, Chairman of Prestige Group, and Nirupa Shankar, Executive Director at Brigade Group, who debated whether owning a home adds value to an investor’s portfolio.

Zerodha co-founder Nikhil Kamath recently discussed why he decided to purchase a home after years of advocating for renting. In a recent episode of his podcast, *WTF is with Nikhil Kamath*, Kamath reignited the debate between buying and renting a house, with real estate leaders such as Irfan Razack (Chairman & MD of Prestige Group), Nirupa Shankar (Executive Director at Brigade Group), and Karan Virwani (CEO of WeWork India) joining the discussion.

Kamath pointed out one major drawback of renting: the lack of certainty around how long you can stay in a property. He explained, “The thing with renting… you don’t have foresight as to when you can move out. I had to move out of this house, whereas I might have liked to stay longer.”

Despite his decision to buy a house, Kamath remains critical of real estate as an investment. He expressed frustration with its illiquid nature, saying he prefers assets like gold, which offer more liquidity. He elaborated, “Places like this have fewer buyers, and if multiple people try to sell at once, prices fluctuate unpredictably.” Kamath contrasted this with the stock market, where even large volumes of sales have a more controlled impact on prices.

He also criticized the high costs associated with real estate, particularly stamp duties that can be as high as 5% to 6%, comparing this to the stock market where such fees don’t apply. Additionally, Kamath expressed skepticism about earning income from rental properties, noting that after accounting for inflation and interest rates, the returns are often negligible.

Zerodha co-founder Nikhil Kamath, who had long advocated for renting over buying a home, recently revealed that he has changed his mind and purchased a house. In the latest episode of his podcast *”WTF is with Nikhil Kamath”*, Kamath reopened the debate on buying vs renting with prominent real estate figures such as Irfan Razack (Chairman & MD of Prestige Group), Nirupa Shankar (Executive Director at Brigade Group), and Karan Virwani (CEO of WeWork India).

Kamath, 37, previously favored renting but acknowledged one key drawback: the uncertainty of long-term residence. He noted, “The thing with renting… you don’t have foresight as to when you can move out. I had to move out of this house, even though I would have liked to stay longer.”

When asked whether owning a house strengthens his financial position, Kamath expressed his dislike for real estate’s illiquidity, saying he prefers assets like gold, which are easier to convert into cash. He explained, “Real estate has fewer buyers, and if several people try to sell at the same time, prices can fluctuate unpredictably. In contrast, the stock market has a larger pool of participants, so even if a million people sell shares, it won’t have the same dramatic effect.”

Kamath also voiced dissatisfaction with paying stamp duty, which can reach 5% to 6% of the property value, pointing out that such fees don’t apply when trading stocks. On the topic of rental properties, Kamath was skeptical about their profitability, arguing that after accounting for inflation and interest rates, the returns are often negligible. He added, “You don’t always have full occupancy for things like AirBnB.”

As one of India’s youngest billionaires, Kamath has a net worth of $3.1 billion, according to Forbes.