Renting vs Buying a house! | Finance with Sharan
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- Опубліковано 7 гру 2023
- To watch full episode: • @financewithsharan on ...
“Buying a house in India is probably the worst investment decision that you can make if you are buying it in a metro city. The house prices have already peaked to such a high level that there is no room for growth. One should first accumulate liquid capital, i.e
make enough money so that your other basic necessities of life like retirement planning,
vacations, kid's education is covered first. And then once you've made significant money in your mid-forties, then buy a house.”
From getting rejected by IIM to finding himself on their stage as a guest speaker just 3 years later, Sharan has had quite a journey! The founder of the ‘1% club,’ Sharan Hegde has changed the narrative on Finance and content creation in the last few years by making financial literacy ‘fun’ and educational. While people assume that learning about finance might be a complex process, he aims to uncover financial education that is not covered by traditional schooling.
Striving to make financial literacy accessible, Sharan’s startup is currently 50 employees strong where he helps his audience get into that “1%” of population by playing their cards (cash) right!
Get ready to learn more about Sharan Hegde as he adds Fun in Finance. Who knows? Your next investment strategy might just be hidden in this episode! Tune in via the link in bio, now!
We talked about:
. The money mindset in Indian families
. His journey of becoming a content creator
. Financial Tips for Gen Z
. Taxes explained
. Personal budgeting strategy
. Buying vs Renting a house
. Emergency Funds debunked!
. SEBI’s regulations and their implications
. Busting Finance Myths
#financewithsharan #humansofbombay #podcast
Links:
Humans of Bombay
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LinkedIn: / humans-of-bombay
Sharan Hegde
UA-cam: / @financewithsharan
Instagram: financewith...
X (formerly Twitter): financewsharan?la...
LinkedIn: / sharanhegde95
Karishma Mehta
Instagram: / karimehta05
LinkedIn: / karishma-mehta-b22151174
About Humans of Bombay -
Humans of Bombay is a movement that started 9 years ago. We believe that every person has a story to tell and we want to help them tell these stories. In these years we’ve published stories across genres - stories of love, hope, faith and courage. And through our storytelling, we’ve built an engaged community of over 5M!
Our idea is simple - to strike a chord with our community and catalogue the beat of humanity, one story at a time. - Розваги
He will buy that 3 cr house by selling financial courses to you by telling you not to buy house.
😂😂😂
😂
,😂
But he will not buy on emi.
Because he already has the money for necessities like child education and retirement fund.
People's buying house not for pride. They are buying for peace of mind.
There is no peace of mind in house if it is taken on loan
It’s the worst decision to buy a house unless your loan is less than 40 percent of the total property. Check the home loan interest rates they have gone up compared to 2020 and they will still rise. Paying towards emi is the worst way to lose your hard earned income and even if you do a partial prepayment that will not be considered in your total outstanding cuz they will grab as much interest as they can. Best way is to invest in land…and you are purchasing it with your own money and you will see a good returns in long term.
@@vikashbkj Mene ye nahi kaha Loan lekar ghar kharido. Unhone video me kaha ghar khareedna worst decision hota hai or log use status ke liye khareedte hai.
Paying emi for 10 or 20 years is peace
Ghanta loan lekar ,ya to budaape mai
Do not buy house but buy useless finance course😂
😂😂😂
😂😂😂
lol 😂
Exactly 😂, Where in Bengaluru the price of real estate is increasing day by day 2 years earlier my neighbour bought a 75L home and now it's value is 1cr +
Especially this shit guys course 😅😂
For him, Vacation is more important and its cheaper and value for money than buying house. For him, Vacation is necessity and home is luxury.
Yes ..😂he is a modern day idiot
This guy talks from his ass. A fraud at best.
I wish you had more fiancial literacy
Spot on!!! Our generation is so short-sighted
Not all are fond of typical life style of paying EMIs till they die, tight their budgets, and tell children we are poor as we bought the house.
My parents best decision was to buy our own house, They struggled initially but now we have our own house no rent, no insecurities like any time vacating of rent house, vacation and levish life can wait but not having own house.
Not buying a house is only the best decision, when you invest your money in another high returns asset class. In reality, how many people actually do that? I bet all the youtubers have purchased their own house
And also hardly 60-70% investment will give proper returns ( number might be less also )... bank mutual funds are scam... The stock market is volatile... Only Gold is something we can rely on...
Then what is retirement planning, paying rent???
Watch till end.
@@sreeragcs3931 that won't be enough to pay rent. Rent for a houses is never stagnant.
@@richardlobo88 I mean this is only applicable for high paying jobs only, those who want to make more out of their money. Not for us average or below. Or you can settle in a country area rather than in cities after retirement so that we can easily save money to buy a home.
@@sreeragcs3931 there is no guarantee that the said job is permanent. If a person loses his job then it will be difficult to pay rent at all. It's always a good idea to have a house in your name. Assuming you are currently living far away.make sure you can earn supplementary income by renting it. Worse case scenario if you don't get a job. You can live in the house you own.
@@richardlobo88 Are you not considering home loan repayment?
At 40 age 3 crore house will be 10 crore and inflation also hit you hard😂😂
Bhai itna hi h to retirement kisi tier2 city me lelo... zindagi bhar bas 1 ghar hi bnate reh jaoge metros me to
He was absent from this class when they thought about capital appreciation of immovable asset
Haaa...sahi baat hai....khud metro mein raho .....rent or ....phr retirement ke tike bhagg aao....bachon ke sath ... Ya unko bhi bol ri ki rent PE raho aur bhaag aana phr retirement mein@@stephenwilson4931
@@fariskamal5653 houses and flats do not appreciate .. they depriciates with time , what appreciates is the price of new flats new houses and land
@@fariskamal5653 what he is trying to imply isn't that your homes will not appreciate but that tying that much curpus of funds to a single house in your mid 20s might cage you from investing into other ways of investment. Again this is about metro cities and not other tiers. Plus retirement planning too becomes difficult with lesser money at hand when young.
Nice to see sensible people in comments
It's not just pride, it's the security you get to live in a house of your own where the landlord cannot boss you. Increase rent prices at his will. Or constantly living in a fear to pay the rent.
By the time you finish retirement plan, the house will be 5 cr, the baby money will be used for house maintenance payment not for emi
This comment should be on top. FFS!
This is some absolute BS shit. I've stayed 20 years in Bangalore. he's not accounting rental inflation. Just buy an apartment for 60-70L and live a chill life. The emi you pay will be equivalent to the rent you pay over 20 years.
If you are paying EMI for 20 years then you are buying your house twice. Generally longer tenure home loan EMIs tend to pay more interest over principal.
You Bhave the option to close early based on your cash flow
Disagree..You didn't calculate the self financing portion that also generates money
@@sudhir2455 How many years have you lived In a tier 1 city?
@@beatalert123 hahaha..all my life
He is too focused on vacation😂
Avg.rich kids😂
he needs a good finance tutorials
We don’t have to focus too much on that “vacation” part. If we consider home loan interest rates, they have gone up significantly high and they will still continue to rise. The point to catch is to have a lot of liquid cash maybe not for vacation but put as much out of your pocket for that house and take as little as possible from home loan cuz emis will eat up all your monthly incomes and as you keep paying year after year, you will realize that your outstanding hasn’t dropped much cuz the interest rates keep rising…if you do a partial prepayment, they will not consider it in the outstanding cuz that will reduce the amount towards interest in your emi. They will keep it in a “parking lot” till you can do a complete closure. I would say invest in lands in b grade cities…with your own cash…invest in something that will add value …keep that home loan to less than 30 percent or so…
I've followed his advice for the past year and have saved a small fortune. Living in the streets has been really tough though
😂😂
I would rather pay emi instead of rent of the same amount and atleast have a house of my own in future, why is buying a house always said to be an expense and not a real estate investment
This is true if EMI = Rent.
In most cases, EMI = 2x[Rent].
@@lonewanderer8414yes emi is not equal to rent . Emi is 2x 3x of rent
@@lonewanderer8414 but after paying rent yow will get nothing , but after paying emi you will have your own house which will be worth more than what you paid for
@@lonewanderer8414 then ignore that 2 rent and assume that you are paying 1 rent + 1 investment for property
Down payment? Furniture? Interior?
His courses are a hype... Do not fall in the trap of 1% club
Can you explain more? I was looking to sign up for that
@@sanjeevn4144 These are worthless... and the tools he mention is mostly useless or can be used only in free trial. One more guy joins him Shashank who tells about stocks and tools.. Complete waste of time and money... Also they ask you to join 1% club in the session by giving a discount... Which is more or less like a naaptol marketing... So paying money to get worthless tools and marketing gimmick..
@@sanjeevn4144Half Knowledge is worse than No Knowledge 😅
@@sanjeevn4144never go for them... i don't know why he is over hyped.
True
Vacation is more important than house 😂 new definition of hustle
**scamming
Getting own house is peace of mind ...living in rented house and running arround like dog when the owner kicks u out ...what the point of that life
I’m 29 I bought a house in pune…
When I’ll get retired I’ll sell/rent that house and shift to a small flat as I’ll not need a big house that time and enjoy my funds
( better investment than SIP NON RISKY INVESTMENT )
I have SIP as well.
How much did you buy it for?
What if u die early 😢
@@zaynshazi9969his ghost will haunt that house like manjulika 😅😅😅
If you listen to him and take decision you will be on streets.on your old age why you need 3cr house you can buy a small flat
Yes but aesthetics and rights of the ppl? Look at the west etc
Don't do it.@@lakshyavarshney9942
That small flat costs 3cr in Mumbai 😅
@@Bjorn-en7hb if a small flat is costing 3cr then check the rent too of that area it's with be 150000/- mthly or more😜
@@Bjorn-en7hb do your research first and then comment what rate is going on in the Market for rental flat and for new flat,under construction flat,and for old flat which area and the location.
Saving money for 20 years... Till then 4 crore flat in metro would be 30 crore... Aise to Ghar kabhi nhi buy kr sakte
Unless you want to leave you kids homeless after your death, and give them the struggle of buying a house, keeping in mind that the house prices during their times will be peaked even more.
Yes in India population is increasing and land is fixed, so instead of buying apartment better to buy house with own land is best
dude, u live your life...provide good education for your kids and let them earn for their life...what is this stupid habit of draining your life to save money for your kids?!
@@Realist839Yeah man, they want to live for their parents, children, relatives except for themselves.
@@Realist839better don't have kids especially youà
@@Realist839 that's true for sometime but not every time. If we can manage to build a house then definitely we should. Because no one knows what will happen tomorrow. In my village many people tells me that my father, grandfather sold their land in just 1-2 rupees to 500 rupees. If they kept that land then today I can become crorepati by just selling 10% of total land. They are suffering because of past mistakes. Yes it's not their responsibility but if you become a father then you would feel what I am telling you. And that doesn't mean that we shouldn't put load on our children but we provide some support then they can go further more distance in success.
And there is one line of quote which clarifies our parent-children money relation.
Agar layak beta ho to use uske bap ki kamai ki koi jarurat nahi hoti hai. Aur nalayak ho to chahe kitna bhi bacha lo vo khatam karke hi chhodega.
If not in a metro city, then buy a house in a small city, if not there then buy a house in a small town, if not there then buy a house in a village. But buy a house at any cost, because it is the best and safest financial , emotional investment you can make in your life.
Even financially Real estate will be the King of all investments in the coming future as, Land is a limited resource.
When did vacations became more important than having a home.
Because home is only for sleeping we should go out and enjoy
@@user-dh5oq6bi1xrich kid mentality. Why don't you be on vacation all the time instead of being at home ?
After the advent of Travel vlogger .
In other video he will talk about to buy home instead of paying house rent. 😂
Actually the problem in india is no long term leasing available.. its just 11 months and then you are at mercy of landlord who can ask you to vacate anytime. Safer lrading options and properly furnished houses will attract more people
11 months.. ? in Bangalore u will get 3 years to 5 years max 😂
If I don't have a house while I am retireing, then what kind of retirement are we talking about? 😂
Get one but have a good liquid cash before going for it…keep that loan to less than 30 percent of the cost of property…
Bro, I'm a Retirement Consultant (Valuations). And let me tell you, It's pretty bad decision to invest in Retirement planning when you'll realise in your 60s and you do not even have your own house and you are solely dependent on your monthly pensions for your expenses including Rent. So, Investment in House>Retirement Planning
There is no vacation concept BROTHER stop putting these thoughts!! India is so diverse can visit anyplace for vacation.
Hype of VACATION and IPHONE plz stop infecting youth of INDIA
Also we don't need luxury hotels and foods, we can travel to nearby using train
India has vacations for every budget .I found good hotel near mallroad manali for 500 rs 4k for 2 person travel from delhi max 10k including shopping and you are done . Placing having train its more cheaper
@@HarpreetSingh-xr6embut he is talking about expensive vacations. When he sights vacation as a reason for not getting a house, you can imagine how costly the vacation can be.
@@Abis-jh8pu I know the cost I have day vacations in 5k and 3L(overseas) but the way he prioritizes the vacations as necessity is wrong
All these influencers have no idea how prices are increasing in metro cities. In Pune 3bhk use to cost 1cr now upward of 1.5cr. without any research and analysis they just say dont buy house.
In long term what's the appreciation?
@@lakshmitejas1685 its less than FD. Thats what they wont understand. Sharan is right on this one.
@@stephenwilson4931 sharan right. But he is completely wrong. Own home is own home. No matter what. If that's the goal then you just buy
@@lakshmitejas1685 yeah but spending whole youth on just buying a house makes no sense
@@stephenwilson4931 depends on what you need. If your parents have a dream of living in their own home. They never lived in own home before. Or you want to marry a girl in your community only. You have to. No much options
But hamare yahan shaadi se pehle ladki waale dekhte Hain ladke ka apna Ghar he ya nahi....usko kaise solve karein
We have done it the other way...bought a house when I was 31...planning for retirement now at 43
Kids you are learning wrong in books. Food, clothes, shelter are not basic necessities. Its food, clothes and "vacation". Lets ask government to add this in books. 😂
Majority of Middle class people. They don't buy houses in Metro City like Mumbai. They have their own house in cities like Lucknow Allahabad, Jaipur, Patna ETC. which don't cost them 3cr...
And Buying a house is the best decision one can make. But the whole point is where and when to buy the house.
The anchor thinking in her mind: oo speaking of house, need to call my agent if he found one for me to buy.
After accumulating funds during retirement and plan to buy that time anywhere will easily cost 3 times more .. which again drain all your corpus. Better buy house in extension outskirts at less price which appreciate in future.
Buying a house in mid 40s, good luck with that 😂
Why not?
Yeah 😂😂 better to start early and by 40s complete the loan
My dad started in 40’s and paid up till his retirement! Nothing wrong!
My grandfather and FIL bought a year after their retirement.
You know why? They spent of their children’s marriage and education.
It was either that or cut short education and buy house.
I am actually very awed that they chose education back even in 1970’s
Bro said prioritize vacations and then buy a house😮💨😮💨
Bro , house is not a asset neither it is a liability owing your own house is a necessity
Ambani family should have asked him for an advise before building world’S costliest building antilia
😂
Brave of you to even think you’re the same boat or even the same planet as them 😂
@@lakshmikrithika2521 sorry I didn’t get you
@@Bro143codeshe means we are not equivalent to Ambani in any way.
Best way to earn money is to teach people how to earn money
By persuading ppl to buy their courses 😅
@@iterminator987yup!!
"His financial forecast: 'Rent and chill.' Meanwhile, he's probably drafting blueprints for his dream mansion on the down-low. 🏰😂 #RealEstateComedy"
My suggestion for yng professionals would be to invest in this series only, health ins, life ins, pension, house in the same series.
Not having a house in long run is very devastating for family and especially the new generation.
Live within your means, simple. Buy a house and factor all your other needs based on your budget. The equity in your house could be considered as your retirement planning for some when you later downsize.
Renting is dead money, therefore buy a house.
Don't just overfocus on children and other family members. At times think about yourself too. We work hard so we must enjoy too within reason. ❤
It's about on what ur investing....any investments with good appreciation is always good....a person having a loan at 20 and can finish it by 45 is still good than a person nearing to his retirement plans to buy a house with liquid corpus and when the cost is almost 100 times more....se this is tricky things which solely depend on individual capabilities and thier financial support and multiple incomes sources....one cannot generalise it
He said never buy. Use that liquid money and earn till your die
The major thing is that these finance influencers consider mumbai and delhi as an example however, india is very vast where very few one's are buying a 3 crore house
you don't need 3core ,you can chose suburban and can get luxurious home in less than core😂
Thanks Sharan for your advice, my rent (received from tenants)has almost doubled cause your influencers are renting instead of buying.. please continue to share your courses so that I will buy another house soon!
Reality is..I bought house in 2017 and my EMI is 37K..now in 2024, the rest of the same houses are 35k-40k..Thank God I bought my own house😊
Basically rich dad poor dad version 😊
He sounds adorable talking all these fancy pseudo strategies just like clickbait thumbnails. This won’t help anyone but himself in getting popular and make some money from it, probably the only money he’d make.
My family has purchased 3 properties in Tier III cities(Gurgaon,Mohali) and have seen tremendous growth in the past decade that no funds, investment plans or stocks could guarantee. I myself have bought my first property a 5BHK in Mohali now and have already seen 25-30% growith within a year, yet the possession is due in Dec 2025.
Instead of paying INR 25-30K INR in rent, it is better to take a house loan and buy your own house and pay the same amount as EMI. This EMI will remain same throughout the tenure of your mortgage(20-25 Years). Meanwhile the rent of that property will double in the next 10 years and will be 4 times as much as the EMI by the time you’ll finish your mortgage.
Gurgaon is tier 3 ??? 😂
Did you not listen? Your gurgaon house was bought a decade ago. And Mohali is far from a Tier 1 city which Sharan was talking about. He's talking about not buying in Tier 1 city. By all means buy a house in developing cities
Beta rbi has increased repo rates
Now brother by that age ur health schemes are also going to hv huge chunks, secondly the rental schemes are also rising kyunki raste mai to aap nahi rehne waale , so always invest firstly on ur house be it a flat, small bhk any shelter but buy it. When u hv ur own shelter u can go for other necessities one by one.
High Priority is Buying a House.... For majority of people.... Its gives u satisfaction
No it's not, real estate is a pretty liquid market, it's really not that big of a deal.
This can be solved by only making a law where only on pan card can hold one residential property where as they can have multiple commercial or agricultural plots but only one residential property
Renting for life is also not practical . Give a 25,26 yr old dude 3 crore . First thing he will do Is buy a house for himself and Start to think about the leftover money 😂. Its a legacy no one can break
He basically asking me to live my life like my father
Keep your advice and let us decide what is good for us
When u are a vacation planner 😂
Basically to buy a house you need the clarity of living into that house!!!
He listens to the available advice and creates his own recipe.
Money is needed for investment and for that marketing is needed like yours.
Thank you for your advice, this have changed my life.
Now I'm homeless.
He is absolutely right
Bro thinks everyone in this world is Ambani so that's why we all should start investing rather than buying a house. 💀😂
Buying house is the best decision of your life.. And as young you take it more secure your future will be.. According to me buying a house should be the youths first priority. Later extra money can be used in travel, expense, and investment / saving for retirement...
In retirement when you will be old will not be able to walk, will be diagonsed by a disease or have any health issues.. You need a place that you can call yours... You need a place where you can just relax amd be calm without bothering the world... At that time you dont want to roam in the city buying houses at the higher rates at that period.
In short property investment is the best investment.. As early As fruitful it will be.
Buying a house is pride, and if we look buying today and selling it off after a year gives you much , 🎉
Wow what a great advice Sir, I will definitely try to implement your advice... 😂
If you are looking house as an investment, there are better asset class. If you have to constantly relocate, then too its not wise. But if you have a secured job or a business, you should own a home. It brings security and status, also since its less liquid, its saved upto a time you are in dire need, else many would spend it on "vacation".
This is only applicable if you're living in a metro city and you're not a native in that city.
He bought house & commercial property as his office in Mumbai recently as he is from Bangalore at age of 27/28.
Now he is advising to buy house at 40s where people will have additional responsibilities such as kids education, taking care of family, elderly etc which might not be majority of case during 30s...
For a middle class family in India with monthly income of 40000 it's a worst dicission to accumulate liquid capital as it never happens...the savings only can be used for medical purpose not for other things
He actually has a point
When he spoke this for the first time, since then real estate has grown 35 percent
I would suggest to buy a cheap ,cheeperor cheapest house so as to use the money on emi instead of rent and then once you have paid the emi go for the update applying the similar method
Sir she understands u more than us..❤😂
Emotions are always above logics.... house is different...home is different...if you get the difference...and ..if you know the satisfaction..you will not bring this conversation again...
In Mumbai home rent agreement made for duration of 11 months only and then you have to move and find new rental every 11 months Because 70% to 80 % home owners don't want to extend the agreement in the next year.
Finance with sharan...I follow my man bro👌
The suggestion are good for financial literate people however most of people don't know the other investments options hence residence and stability is much better than other volatile investments
My dad said that when he bought a plot for 30 lacs and spent 70 lacks to build it. Only worth 14cr today. So definitely listen to this guy 😅
I just bought 3 cr house in Pune and I feel good about it . Can’t wait to get possession and start living. Living in your own house gives you the feeling you can’t get in rented property. It brings stability in your life.
Bhai ne course bech ke paise kamaiya bina kisi financial qualifications ke😂😂😂😂😂😂
House remains for at least 2-3 generations and u can further more renovate it and keep living in it so the upcoming generation doesn’t have to spend humongous amount of money on it, its the best investment for us and ur upcoming generations
U can have house in less than 3 crore and it will appreciate, getting a house is smart thing than vacation. The emotional, physical and mental issues living in rented house is much more. Also there is no guarantee we can get more by investing in other things. All the youtube wisdom is there because you guys have already became rich and u have the safety net or trying things and other things. The only thing I agree with him is that one should not put the HUGE burden of EMIs in their 20s as it might limit your risk taking capacity and thereby growth, I could be wrong also. Cheers
Owning house does not necessarily mean "investing". It is different feeling, a sense of accomplishment and pride of owning it.
I’m not sure about his courses, never attended. But I agree on his point buying house in India depending on job is worst kind of planning. You are stuck with that job and loan for rest of your life and finally after 20yrs you end up with house by paying more than 200% of that loan.
One who is first generation job holder must think about own house after 40s. And till you reach 40s you should invest with target to achieve 15% cagr. Which basically doubles your investment every 5years. The more you invest more chances you get more returns.
Have alot of money and live on a road, i wish life was excel sheet
Bro's entire career is telling people not to buy a house💀
By the way rental prices are also skyrocketing in metros. Buying a budget friendly flat is must.
This 3 cr house used to be just 30 lacs just 10-15 years ago. You never know how much it can grow further.
I heard this concept around 5-6 yrs back that there is saturation in the houses prices in metros. Dont buy.
And I have seen prices going 2X or 3X during this time of residential properties. Good thing is I didn't follow these finfluencers.
Couple of years back all of them were advising to buy all sorts of cryptos!!
True!
Listen to these guys and die overthinking.
It all depends on personal matter. If person having a job needs a travelling or office changes as per the projects working on then go for rented house till retirement and save money with min 6% interest. Then buy a house in out of metro city to live happily.
Apna Ghar sbse pyaara. It's not a luxury it's a basic necessity. Even if it's small, it still my own home where I can live with my family in peace.
Please buy your own house for mental peace and equity mutual funds investment also.
Bhut bdiya champak
I agree with Sharan . People really don't know where they are headed . I will never own a huge valued asset which degenerates with age, which I share with others and which I need to replace every 25 years. Also it will give you 50% value of a new flat of the same size in the future. Good luck with redevelopment of 50 storeyed buildings in the future.
People buy house to get rid of anxiety of paying rent regularly constantly hovering in their minds. Living for years and decades thinking about paying the next month's rent is not easy. It also affects our peace of mind and productivity.
Buying home and stay with family is more important rather than any thing