Anupam Mittal, Shark Tank India judge and the founder and director of Shaadi.com, recently shared his insights on investing in real estate and markets on The 1% Club Show with Sharan Hegde, CEO and Co-founder of The 1% Club. 

Anupam said he owns 15-20% in real estate, including primary and secondary residences, thanks to family inheritance as well as assets purchased for his workplace and a couple of residences. “I just own it because of just family real estate that’s come to me and real estate that I purchased for my office and residence a couple of residences I purchased but honestly, our real estate is a bit of fool’s investment right”

“In India, your rental yield is 2-3% and commercial is a little more maybe, but it has to be managed actively, commercial is difficult unless you’re doing it professionally in my view, and residential is only 2-3% yield so essentially, the reason you are investing in real estate is you’re expecting capital appreciation only then it’ll make sense right,” he added.

The Shark Tank India judge purchased his primary residence, a 6-bhk home in South Mumbai near Cuffe Parade, approximately 13-14 years ago for Rs 3-4 crore. The value of this property has grown 10X in these years. “That’s luck and real estate cycles you know they come and go, but I think investing is a very personal thing while you want to maximise your return, you also want to maximise your peace of mind.”

Watch full video: Anupam Mittal on The 1% Club show with Sharan Hegde

Investing in real estate is a deeply personal decision that balances the desire for financial returns with the need for emotional security. Anupam says that while market cycles fluctuate, the peace of mind that comes from owning a home is invaluable for many. 

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Where to invest Rs 2 crore – Markets or Real Estate?

Anupam emphasised the significance of making informed decisions when it comes to investing. Even if you are making emotional decisions, you should recognise them as such and take ownership of them. 

Anupam pointed out that while the older generation values tangible assets like houses, offices, or jewellery, the younger generation may not see wisdom in them. However, he said, owning a primary house has saved many from financial ruin. But when it comes to investing in markets, he warns that it requires discipline; without it, people often make decisions based on fear and greed, leading to potential financial loss.

“Our elder generation will say to get your own house, your own offices, have jewellery and you know today’s kids our generation and your generation say no, intellectual you if you see it makes no sense, yes, but if you look at anecdotes a lot of households who’ve gone completely to ruin are only safe today, they have a roof over their heads because their ancestors insisted on buying the primary house,” he said. 

He further said, “I’ll tell you what happens when you invest in the markets if you have the discipline to stay invested and compound that’s great but, most people are driven by fear and greed so, they will take that liquid money and they will double down on something stupid or they will remove the money when they shouldn’t and they will drive themselves to ruin and at that point your returns.” 

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