During a recent podcast, the founder and CEO of Bombay Shaving Company shared a perspective on not buying a home.
During the conversation, Shantanu Deshpande recently revealed that he’s paying Rs.1.5 lakh rent for an apartment located in the prime area of Gurugram. He later elaborated on why he finds it impractical to invest in a flat. This comment came in response of Ajit Korupolu who spoke in support for building asset-building through EMI payments rather than rent,
Countering Ajit Korupolu’s point, Shantanu Deshpande said, “I’m paying Rs 1.5 lakh in rent, including maintenance Rs 1.6 lakh on Golf Course, premium places, etc. The apartment I live in is roughly worth Rs 7.5-8 crore. If I were to buy that apartment and I had to leverage, let’s say, 70 percent of it, Rs 6 crore loan would be Rs 6-7 lakh per month of EMI, which is like four times my rental cost. So, I’m living in a house which is one-fourth the EMI cost. So, it makes no sense to buy.”
He further said that his preference was to live always live near his workplace. As his company Bombay Shaving Company has frequently changed offices on several occasions. As a result, house renting has given him the flexibility to relocate as needed, while maintaining proximity to his workplace.
He further added, “I always feel like the rental freedom is much higher. It takes 15 days to move into a home even if you’re upsizing,” he said. “Let’s say you have kids, two bedrooms to three bedrooms, three bedrooms to four bedrooms, it takes 15 days to move. Moving is so easy. You are asset light, which is probably not your preference, but I don’t have interest to pay. I have rent. But that’s my thinking.”
