The past few years have witnessed a rise in trend among leading names in various industries to rent houses instead of buying due to several factors, increasing interest rates being one of them.
Zerodha co-founder Nikhil Kamath also expressed a similar desire of renting a home over purchasing as he felt that the real estate at existing valuations were "ridiculous and retarded".
"I could not get myself to buy real estate at today's valuations because personally, I think they are ridiculous and retarded with interest rates where they are, for prices of homes and offices to go up does not make sense," Kamath had said in CNBC TV-18's "I Did it My Way" podcast in September.
Kamath further revealed that he continued to stay in a house that was not owned by him and planned to live the same way in future, as well.
"Yeah, I don't foresee that changing. The only one home that I have is where my parents live and that is more for emotional reasons, but the way I look at it is if I am able to earn 10 per cent, 12 per cent on money deployed and I am able to rent homes in India at 3 per cent and if my budget for a home was let's say Rs 10 and I can earn Rs 12 on that, if I can rent three or four apartments in that Rs 12, it will never make sense for me to buy a home because the rental yield I am dishing out is significantly lower than the capital deployed, the returns they give me," Kamath added.
In 2021, several leading Bollywood names such as Madhuri Dixit and Kriti Sanon opted to rent a house in Mumbai rather than purchase a home for themselves with real estate brokers stating that celebrities preferred to maintain a specific type of lifestyle and as a result, preferred to opt for the former rather than the latter.
Also read: 'Trading is like dating': Zerodha's Nikhil Kamath talks about his best and worst investments
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