For most Indians, owning a home is seen as the ultimate milestone — a symbol of success, stability, and financial security. But is it always the smartest move? The age-old rent vs buy debate has exploded again, this time fueled by a viral Reddit post and a fiery discussion on social media. Now, CA Nitin Kaushik has joined the conversation, challenging the “buy at all costs” mindset with some hard-hitting realities.
Kaushik took to X with a blunt warning: “The harsh truth: Buying a house can make you broke.” According to him, too many people rush into homeownership without understanding the financial trap it can become. He points out three common mistakes — draining savings for the down payment, locking 40% or more of monthly income into EMIs, and buying just because “rent feels like waste.” The result? A lifestyle where you’re one emergency away from financial stress.
Instead, he argues, renting often offers more freedom than people realise. No property taxes, no costly repairs, and the ability to move cities for better opportunities — all while keeping your money liquid for investments that may generate better returns than real estate.
Kaushik describes early home-buying as “financial handcuffs.” A 15–20 year loan can limit career mobility and tie you down to a liability that feels more like a burden than an asset. The so-called dream home can quickly turn into a never-ending cycle of EMIs and missed chances. So, when does buying make sense? Only if you’re financially prepared, says Kaushik. That means having a 6–12 month emergency fund, ensuring EMIs don’t exceed 25–30% of your income, and running the numbers before signing on the dotted line. Owning a home isn’t a bad goal — but it shouldn’t come at the cost of financial freedom.
Adding to this, Kaushik issued another reality check for today’s workforce: “Job security is fragile today. Learning new skills and building side income streams is no longer optional; it’s smart survival!” His point ties back to the home-buying debate — in an economy where career stability is uncertain, committing to massive loans without a safety net can be a dangerous gamble.
Radhika Gupta on rent vs buy
Radhika Gupta, CEO of Edelweiss Mutual Fund, in a conversation with INDmoney, said that buying vs renting is a very personal decision. From a purely economic perspective, purchasing a house rarely makes sense in India, as rental yields are just 2–4%, lower than even bank deposit returns, she said. But a home is more than just numbers — it carries emotional weight, some stability and a space to create memories, she said.
For those who value the emotional comfort of owning, buying a home can be worthwhile, and for others, renting provides flexibility without the burden of long-term debt, she said. Financing also plays a role. While loans should be approached carefully, a home loan can be manageable if the EMI is affordable and doesn’t cause financial or mental strain, she added.
However, the same reasoning does not apply to secondary real estate. A second home or investment property must be evaluated strictly as an asset, compared to alternatives like fixed deposits, equities, or mutual funds, she added.
Kaushik took to X with a blunt warning: “The harsh truth: Buying a house can make you broke.” According to him, too many people rush into homeownership without understanding the financial trap it can become. He points out three common mistakes — draining savings for the down payment, locking 40% or more of monthly income into EMIs, and buying just because “rent feels like waste.” The result? A lifestyle where you’re one emergency away from financial stress.
Instead, he argues, renting often offers more freedom than people realise. No property taxes, no costly repairs, and the ability to move cities for better opportunities — all while keeping your money liquid for investments that may generate better returns than real estate.
🏠 The Harsh Truth: Buying a House Can Make You BROKE
— CA Nitin Kaushik (@Finance_Bareek) August 20, 2025
We’ve been sold the dream that “owning is always better than renting.”
But here’s the reality no one wants to admit 👇
❌ You drain all your savings just to arrange the down payment, leaving no safety net for emergencies.
❌…
Kaushik describes early home-buying as “financial handcuffs.” A 15–20 year loan can limit career mobility and tie you down to a liability that feels more like a burden than an asset. The so-called dream home can quickly turn into a never-ending cycle of EMIs and missed chances. So, when does buying make sense? Only if you’re financially prepared, says Kaushik. That means having a 6–12 month emergency fund, ensuring EMIs don’t exceed 25–30% of your income, and running the numbers before signing on the dotted line. Owning a home isn’t a bad goal — but it shouldn’t come at the cost of financial freedom.
Adding to this, Kaushik issued another reality check for today’s workforce: “Job security is fragile today. Learning new skills and building side income streams is no longer optional; it’s smart survival!” His point ties back to the home-buying debate — in an economy where career stability is uncertain, committing to massive loans without a safety net can be a dangerous gamble.
Job security is fragile today. Learning new skills and building side income streams is no longer optional, it’s smart survival!#investing #layoffs
— CA Nitin Kaushik (@Finance_Bareek) August 20, 2025
Radhika Gupta on rent vs buy
Radhika Gupta, CEO of Edelweiss Mutual Fund, in a conversation with INDmoney, said that buying vs renting is a very personal decision. From a purely economic perspective, purchasing a house rarely makes sense in India, as rental yields are just 2–4%, lower than even bank deposit returns, she said. But a home is more than just numbers — it carries emotional weight, some stability and a space to create memories, she said.
For those who value the emotional comfort of owning, buying a home can be worthwhile, and for others, renting provides flexibility without the burden of long-term debt, she said. Financing also plays a role. While loans should be approached carefully, a home loan can be manageable if the EMI is affordable and doesn’t cause financial or mental strain, she added.
However, the same reasoning does not apply to secondary real estate. A second home or investment property must be evaluated strictly as an asset, compared to alternatives like fixed deposits, equities, or mutual funds, she added.
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