CA shares story of how a Rs 2.8 lakh monthly earning couple's 'smart investment' turned into financial stress

Chartered Accountant Nitin Kaushik recently shared a cautionary tale that highlights how the dream of becoming a landlord can sometimes turn into a financial nightmare. According to him, one of his clients, a couple earning Rs 2.8 lakh per month, believed they were making a smart move by purchasing two properties. Their idea was simple—pay the EMIs now, and future rental income would eventually cover the costs. However, the reality turned out very different.

Together, the two flats tied them down to monthly EMIs worth ₹1.6 lakh. Despite their high income, they were left with little breathing room. Their investments outside of real estate amounted to just Rs 10,000 per month in SIPs—barely enough to secure long-term goals like their children’s education fund.

Kaushik points out that while they owned valuable assets on paper, their cash flow was a disaster. “They didn’t buy homes, they bought stress,” he wrote.

CA Nitin Kaushik's advice is straightforward: real estate is a solid asset class, but ignoring liquidity and future needs can trap you financially. Instead of copying neighbours or chasing status, plan investments around what your future self will actually require.

Rent vs Buy

Radhika Gupta, CEO of Edelweiss Mutual Fund, believes the rent-versus-buy debate is not just financial but deeply personal. Speaking to INDmoney, she explained that from a purely economic lens, buying a home often doesn’t add up in India, where rental yields hover around 2–4%—lower than even bank deposit returns.

Yet, she stressed that a home is more than numbers. It represents stability, emotional comfort, and a place to build memories. For those who value these aspects, owning makes sense; for others, renting offers flexibility and freedom from long-term debt.

Gupta however advised careful consideration of financing. A home loan can be worthwhile if EMIs are affordable and do not cause financial or mental stress.



However, she cautioned against viewing secondary properties the same way. A second home or investment property, she said, must be judged strictly as a financial asset, weighed against other financial assets like equities or debt.

The EMI trap

In a recent tweet, chartered accountant Nitin Kaushik had warns against blindly following the belief that “owning is always better than renting.” According to him, this mindset often traps people in long-term financial stress rather than creating wealth.

He explains that many first-time buyers make three critical mistakes: draining their entire savings on a down payment, locking themselves into EMIs that consume over 40% of their monthly income, and purchasing property simply because “rent feels like waste,” without checking financial readiness. The result is a lifestyle of paycheck-to-paycheck survival, with no safety net for emergencies.


Kaushik highlights the advantages of renting, which offers flexibility, no property tax or repair burdens, and liquidity for other investments. On the other hand, buying too early can feel like financial handcuffs—tying you to a 15–20 year loan, limiting career mobility, and turning your biggest asset into a liability.

He stresses that buying is smart only when certain conditions are met: having 6–12 months of emergency savings, ensuring EMIs are under 25–30% of income, and making the decision based on numbers rather than social pressure. Sometimes, Kaushik concludes, the wisest financial decision is simply to wait.