CapitalMind CEO calls houses and cars ‘terrible investment’; here’s why
1 year, 8 months ago

CapitalMind CEO calls houses and cars ‘terrible investment’; here’s why

Live Mint  

Rents in India’s technology hub of Bangalore have nearly doubled since the start of last year, making it the country’s hottest residential market. Amid this, Bengaluru based CapitalMind CEO Deepak Shenoy has called called investment in houses and most cars a ‘terrible investments.’ He added that the purchase is overshadowed by the warm fuzzy feeling of ownership, most of the time. They miss the point.” Calling houses a terrible investment, he said, “Houses are terrible investments, like most cars; but that is overshadowed by the warm fuzzy feeling of ownership, most of the time. I have one because it gives me peace of mind.” Some other wrote, “The warm fuzzy feeling chains you to a job for the next 20 years and reduces risk taking ability.” Some other wrote, “The rent I earned from my houses more than paid my EMI after the first couple of years. I agree they should only buy when they can afford rather than burdening themselves by paying 1.5x for something that may even be 0.8-0.9x in few years.” Some other questioned, “In a world where one can work out of anywhere and people change jobs so often, does it really make sense to get stuck in one place by buying an apartment?” Another wrote, “I think one should definitely go for that warm fuzzy feeling if difference between EMI and rent is small.” This is not the first time Shenoy has been against investment in houses, last year in April, the CEO had said that all his personal investments are in equity and debt in the ratio of 85:15.

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