Rakesh Jhunjhunwala sold Crisil shares worth ₹27 crores in 2005 to buy a house.
Today, the same shared are worth ₹759.4 crores.
Whereas, the house is worth only ₹70 crores.
Growing up, most Indian parents teach their children to buy a house.
During one's lifetime, a house is usually one's biggest investment (or expense).
But there is something that makes me restless.
Is it practical that we should commit ourselves to buy a new house as soon as we start earning and tie ourselves up for the next 15 – 25 years of paying EMIs?
I am still living in a rented apartment in Bangalore.
I eventually will buy a house. But not in a way that the EMI becomes a burden or a barrier for me.
I agree that owning a house gives stability and peace of mind. But the over-the-board EMI burden takes all that away.
I believe we should invest in equity in the early stages of our financial lives.
The returns on equity investments are far more than what average real estate offers.
And you can invest a small amount in equity, unlike real estate.
Why not stay on rent in the initial few years and invest the remaining amount?
I think we need to rethink our early life buy-a-house culture.
What do you think?