Nikhil Kamath Buys First House – But Why Doesn't Zerodha Co-Founder Like Real Estate As An Investment?

New Delhi: Nikhil Kamath, co-founder of Zerodha, India's largest discount brokerage, has taken many by surprise with his recent decision to buy a house. Known for his strong preference for renting over buying, Kamath has often highlighted the advantages of renting earlier. However, in a recent episode of his podcast WTF, the 37-year-old entrepreneur shared his thoughts on homeownership with industry leaders Irfan Razack, Chairman and MD of Prestige Group, Nirupa Shankar, Executive Director at Brigade Group, and Karan Virwani, CEO of WeWork India. The conversation reignited the long-standing debate between buying and renting property.Reflecting on his new stance, Kamath admitted that renting comes with a significant drawback. “While renting has many benefits, the one disadvantage is the uncertainty about when you might need to move out,” he explained. “I had to vacate a house where I would have liked to stay longer. Avoiding the hassle of moving made it feel practical to buy a place.”Despite his decision, Kamath remains critical of real estate as an investment. “I don’t like the illiquid nature of real estate,” he remarked, noting that he prefers assets like gold for financial security. Speaking about the volatility in the property market, he added, “Luxury properties like this have fewer buyers. If several owners decide to sell at the same time, the prices can become very unpredictable.”Drawing a comparison to the stock market, Kamath highlighted its higher liquidity. “In the stock market, there are millions of participants. If one million people decide to sell shares, it has a measurable impact,” he said.Kamath also criticized the high stamp duty associated with property transactions, saying, “In the stock market, I can trade without paying 5 per cent to 6 per cent in stamp duty.” During the discussion, Kamath expressed skepticism about the profitability of buying property to rent out. “I don’t think anyone makes real money from buying and renting a place,” he said.

Nikhil Kamath: Net WorthAccording to Forbes, Kamath’s net worth stands at $3.1 billion, placing him 1,135th on the list of the world’s wealthiest individuals as of October 19, 2024.