‘In land where it hasn’t appreciated more than 25 to 40% (which is like one in a hundred), 90% of the investment in 5 years goes up to double or 80%’, Promoter and Joint Managing Director of Balaji Telefilms, Ektaa R Kapoor, has shared her views on wealth creation and the importance of investments.
In a recent episode of The Ranveer Show (TRS) podcast, released on Saturday, Ranveer Allahbadia, also known as BeerBiceps, spoke to Ekta Kapoor about her family’s real estate business and investment philosophy.
From saving money and investing to buying property, here are the key personal finance lessons investors can take away from the discussion.
How did Ekta Kapoor’s father approach saving and investing?
Allahbadia said, “One, congrats on the real estate business.” Kapoor said her father entered the real estate business at 65, demonstrating that it is possible to explore new opportunities later in life.
She said, “My dad (Jeetendra Kapoor) and my brother (Tusshar Kapoor) have done it, and what is exciting to know is my dad started this business in his 65th year. He is 84 now, and he has grown in a whole new medium, which is a big learning for young people: that you can start at any age.”
How to save and invest money for the future?
She explained how her father’s upbringing influenced his attitude towards money.
Ekta Kapoor said, “My father is a very big family man, but he came from…from a chawl. So his belief was that when money comes after a lot of struggle in life, you save it; you don’t spend it.”
“And his thing was that we should invest money; it was that middle-class mentality that an Indian father has, to save for the children,” she added.
Allahbadia added, “But also an attacking mentality, to invest and multiply wealth.” Kapoor explained how her father combined saving with investing.
She said, “When you have that. You have to know how to save. Then with those savings, you learn to invest. So from there, he decided to make his first FD. So some money is safe. Then invest in land.”
He said Warren Buffett and Charlie Munger used to say, “Protect your capital first and foremost. Attack with your money, but first keep the money safe and protect your defensive capabilities also.”
The takeaway is to build savings before taking investment risks. FDs offer relatively predictable returns, while land may provide long-term growth.
Why does Ekta Kapoor believe real estate is important for wealth creation?
Allahbadia asked, “Do you think all your media learnings were useful here, outside of media businesses?”
Ekta Kapoor spoke about her father and brother’s real estate business and its focus on homeownership. “My dad is, what should I say, comes with the Indian ethos. And I think this whole project was affordable housing in Pune.”
“This is the vibe of our project. It comes from the fact that every Indian mostly wants to invest in their own home,” she added.
Kapoor added that “It is a sense of belonging. Today young people think it’s a great thing when you start putting money in the bank and making investments and putting your money into renting. So, rentals also then eventually work in the favor of the person who owns the land.”
This means property ownership can offer both a place to live and the potential to generate rental income, while you retain the asset.
Is real estate a reliable way to preserve wealth?
Allahbadia shared an example of wealthy families that managed to preserve their fortunes across generations.
He said, “I asked him (Dr. Eric Weinstein) about the cowboy era of America; people were rich even back then. But were all the rich families able to retain their money over 100 years? I mean, if you meet their vanshaj (descendants) now, would they also be rich? He says no, unless the family invested in real estate.”
Ekta Kapoor argued that property had helped businesses and families build wealth even when their original businesses struggled.
She said, “Real estate is the only thing; it’s like the big brother of any business. Your big brother is standing by your side.”
“My friends always ask me, I say just invest at least this much of your capital somewhere or other. So I believe it is the safest form of investment even today,” she added.
This means that real estate can serve as a long-term asset. should consider liquidity and diversification rather than concentrating all their wealth in one asset.
How can buying a home help build wealth over time?
Ekta Kapoor said that when people compare property appreciation with the returns they could have earned by keeping their money in the bank, they should also consider the rent they would have paid.
She explained that, “Somebody told me if I had kept this much then today I would have earned this much. I said, If you add the rent you saved, then… they are like, Oh man, so you see, even in land where it hasn’t appreciated more than 25 to 40% (which is like one in a hundred), 90% of the investment in 5 years goes up to double or 80%. If you add the rent you would have paid to stay, it automatically adds up to some unheard-of amount.”
The financial benefit of buying a home is not limited to its price appreciation. Homeowners also save on rent they would otherwise pay. For example, if a property’s value rises modestly over five years, the rent saved during that period can add to the overall financial benefit.
How can homeownership and gold jewellery help preserve wealth?
Ekta Kapoor compared homeownership with jewellery, highlighting the practical use of both assets.
She said, “Buying a home is your only security because that’s the money you can actually enjoy.”
“Because wearable jewelry is what you wear and then you also invest. It’s gold. You wear the gold, you own the gold. House, you stay in the house. So it’s usable and at the same time it appreciates,” she added.
Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.