When Zerodha's Nikhil Kamath revealed he prefers renting over buying a house

Nikhil Kamath revealed that he continues to to stay in a house that was not owned by him.

Zerodha co-founder Nikhil Kamath said that he prefers renting a home over purchasing it as he thinks that real estate at existing valuations were "ridiculous and retarded".

Zerodha co-founder Nikhil Kamath.

"I could not get myself to buy real estate at today's valuations because personally, I think they are ridiculous and retarded with interest rates where they are, for prices of homes and offices to go up does not make sense," Nikhil Kamath said in a podcast in October.

He revealed that he continues to to stay in a house that was not owned by him. In the future as well, he plans to live the same way, he said, explaining, “Yeah, I don't foresee that changing. The only one home that I have is where my parents live and that is more for emotional reasons, but the way I look at it is if I am able to earn 10 per cent, 12 per cent on money deployed and I am able to rent homes in India at 3 per cent and if my budget for a home was let's say ₹10 and I can earn ₹12 on that, if I can rent three or four apartments in that ₹12, it will never make sense for me to buy a home because the rental yield I am dishing out is significantly lower than the capital deployed, the returns they give me.”