In a recent podcast conversation with Hyderabad-based real estate entrepreneur Ajitesh Korupulu, Shantanu Deshpande shared his perspective on why he prefers renting over owning a house. Deshpande highlighted the significant monthly rent of over Rs 1.5 lakh he pays for his current accommodation in Gurgaon, which is situated in a premium location like Golf Course area.
Responding to Korupulu's argument that paying EMI towards a property leads to asset creation, Deshpande expressed that the math doesn't work out in his favor considering the high property prices in Gurgaon. He elaborated on the comparison between the cost of renting his current apartment worth Rs 7.5-8 crore and the potential EMI payments if he were to buy it, pointing out that the EMI cost would be significantly higher than his current rental expenses, making renting a more financially feasible option for him.
Deshpande also stressed the advantages of renting in terms of freedom and flexibility, citing the ease of relocation and being asset-light as key benefits of not owning a property. He emphasized his preference for investing in the public markets where liquidity is higher and building assets in a more flexible and liquid manner compared to tying up funds in a fixed asset like real estate. Deshpande's decision-making process reflects a strategic approach focused on financial prudence and flexibility, rather than traditional notions of homeownership as the sole path to asset creation.