October 3, 2025

In India, owning a home is seen as the ultimate dream, a proud symbol of success and stability. But financial guru Sharan Hegde, founder of the 1% Club and former banker, throws a bold challenge to this traditional idea. In a recent video, he dives deep into numbers to show how a ₹1 crore home might actually be a money pit for salaried people. Hegde points out hidden, bite-it-all costs that most buyers miss. "I’ve spent over ₹1 crore on rent in the last 10 years, and I don’t regret a single rupee," he reveals. "Because I did the math that 99% of homebuyers never do before signing away the next 20 years of their life." Let’s break down his eye-opening math. A ₹1 crore house comes with about ₹90 lakh in interest on your home loan, ₹10 lakh in stamp duty and other fees, plus at least ₹20 lakh spent on maintenance over 20 years. Even if the property price rises magically to ₹4 crore, once inflation is factored in, real gains are far smaller than most imagine. On the flip side, renting for ₹25,000 monthly over 20 years costs around ₹1.12 crore – less than half the total ownership cost of ₹2.2 crore. What’s more exciting? By saving the difference between rent and home loan payments and investing that money at an average 12% annual return, you could grow your wealth to ₹4.6 crore. Hegde shows this gives you a cool ₹3.1 crore edge! He pushes the pedal even further: "At 18% returns, that difference shoots up to ₹8.5 crore," he explains. Sounds like a jackpot! Hegde also tackles the emotional strings tied to buying a home. "When people say they hate paying rent, what they’re really doing is paying double the rent — to the bank," he says sharply. His advice? "The most profitable way to invest in real estate is through short-term flipping with leverage, not by buying a single home to live in for life." To help hopeful buyers, Hegde hands out four golden rules to keep your money safe: 1. Your EMI should never take more than 30% of your after-tax income. 2. Save at least 20% of the property's cost upfront as a down payment. 3. Keep emergency savings to cover EMIs for two whole years. 4. Be ready to handle a drop in your home’s value. He warns strongly, "Otherwise, you’re not buying an asset. You’re buying a liability that drains your future." So, before chasing that house dream, think: is it a treasure or a trap?

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Tags: Sharan hegde, Homeownership, Renting vs buying, Wealth building, Real estate costs, Investment,