General
The debate around buying a home versus renting has been around in recent years, driven largely by social media influencers who argue that renting and investing the surplus money delivers better returns. However, entrepreneur and Shark Tank India judge Anupam Mittal has offered a grounded counter-view, calling for a more realistic understanding of money, risk, and personal stability.
Speaking on the Pinkvilla podcast, Mittal shared why owning a primary home still carries deep financial and psychological value, especially in the Indian context.
General Why the ‘Rent and Invest’ Logic Falls Short
Mittal questioned the growing narrative that promotes renting while chasing market returns of 10–12 percent. He explained that such calculations often ignore a key condition: financial stability. According to him, these returns only become meaningful when an individual already has money left over after covering basic needs. Without that cushion, the promise of higher returns remains theoretical.
He pointed out that many online discussions focus narrowly on rental yield comparisons, often highlighting that property gives only two to three percent returns annually. Mittal argued that this comparison is incomplete because it looks only at numbers, not at how people actually behave with money when they lack security.
General Home Ownership as a Foundation, Not Just an Asset
Mittal stressed that owning a primary home provides a sense of permanence that changes how people approach risk. Once someone no longer has to worry about paying rent or losing their roof, they are more confident in taking calculated risks — whether in business, career moves, or investments. This mental security, he suggested, is rarely factored in but plays a major role in long-term wealth creation.
He added that when money remains easily accessible, people often overestimate their financial strength and make poor decisions. Without a fixed asset like a home, there is a tendency to take unnecessary risks or spend impulsively, sometimes eroding even the original capital.
General Lessons from Traditional Financial Wisdom
During the conversation, Mittal reflected on advice commonly given by older generations, such as buying a home and investing in gold. While such guidance is often dismissed today as outdated, he believes there is practical wisdom behind it. Assets like homes and gold are not easily liquidated, which naturally limits reckless spending. This restraint, he noted, helps people preserve wealth over time.
Using his own experience, Mittal acknowledged that he once questioned the value of holding gold because it did not generate visible returns. Over time, however, he came to recognise its role as a store of value rather than a growth instrument, much like a primary residence.