Bombay Shaving Company CEO pays Rs 1.5 lakh rent

‘The apartment I live in is roughly worth Rs 7.5-8 crore. If I were to buy that apartment and I had to leverage, let’s say, 70 percent of it, Rs 6 crore loan would be Rs 6-7 lakh per month of EMI, which is like four times my rental cost,’ Shantanu Deshpande said.

Analysis of Shantanu Deshpande’s Perspective on Renting vs. Buying a Flat

Introduction: Shantanu Deshpande, founder and CEO of Bombay Shaving Company, recently shared his insights on renting versus buying a flat in a podcast. Deshpande emphasized the financial practicality and freedom associated with renting, challenging the conventional belief that buying a property is always the better financial decision. This report delves into his arguments, the context provided by real estate entrepreneur Ajitesh Korupolu, and the broader implications for professionals and entrepreneurs.

Key Points:

  1. Deshpande’s Financial Analysis:
    • Deshpande pays Rs 1.5 lakh per month to rent an apartment in Gurugram, a prime location.
    • The apartment he rents is valued between Rs 7.5-8 crore.
    • To buy this apartment, Deshpande would need a loan covering 70% of the cost, amounting to Rs 6 crore.
    • The EMI for such a loan would be Rs 6-7 lakh per month, which is four times his current rental cost.
    • Therefore, renting at Rs 1.5 lakh is financially more viable than buying, as it saves him a significant amount monthly.
  2. Contrasting Viewpoint:
    • Ajitesh Korupolu, CEO of ASBL, argued that paying an EMI instead of rent leads to asset creation.
    • Korupolu suggested that even though rent might seem cheaper, paying an EMI builds equity in a property, which can be a valuable asset over time.
    • For salaried professionals, real estate often becomes a significant personal asset.
  3. Deshpande’s Rebuttal:
    • Deshpande highlighted the freedom and flexibility renting provides, particularly for entrepreneurs whose primary assets are often tied to their business ventures.
    • He emphasized that in his specific context (Gurugram), the high cost of property and the resultant high EMI do not justify the purchase over renting.


Deshpande’s perspective sheds light on an important consideration in personal finance: the cost-benefit analysis of renting versus buying property. While Korupolu’s argument holds for many salaried professionals, Deshpande’s situation as an entrepreneur illustrates that the decision is highly context-dependent.

  1. Financial Viability:
    • Deshpande’s calculation clearly shows that renting can be significantly cheaper than paying a high EMI, especially in expensive real estate markets like Gurugram.
    • The savings from renting can be redirected into other investments or business opportunities, potentially yielding higher returns.
  2. Asset Creation vs. Flexibility:
    • Buying a property ties up capital and reduces liquidity, which can be a drawback for entrepreneurs who need flexibility to allocate resources into their businesses.
    • Renting provides mobility and less financial burden, allowing individuals to adapt quickly to changing circumstances.
  3. Market Specifics:
    • Real estate market conditions vary greatly between cities. While Deshpande’s example is based on Gurugram, other cities like Hyderabad might present different dynamics where buying could be more advantageous.


Shantanu Deshpande’s rationale for renting rather than buying property in Gurugram underscores the importance of contextual financial planning. His case highlights that while asset creation through real estate is a sound strategy for many, it is not universally applicable. The decision to rent or buy should be based on individual financial circumstances, market conditions, and personal priorities. For entrepreneurs like Deshpande, renting offers a financially prudent and flexible solution compared to the high costs and commitments associated with property ownership.

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