Kevin O'Leary Says Walking While Single Can Help You Build A Strong Financial Foundation Before You Become A Home Owner

Core Viewpoint - Kevin O'Leary argues that buying a home is only sensible if individuals plan to stay for at least five years, suggesting that many young adults may benefit more from renting and investing the difference [2][4]. Group 1: Home Buying Recommendations - O'Leary emphasizes the importance of the five-year rule for home buying, stating that if individuals are in the early stages of their careers, they should consider renting close to work to save on commuting costs and invest those savings instead [2][3]. - He suggests that homeownership is more appropriate when individuals are ready to start a family and seek stability in a community, highlighting the need for a supportive neighborhood and school system for children [4]. Group 2: Financial Considerations - The current mortgage rates, which range from 6% to 7%, mean that potential homebuyers will likely purchase less house than previous generations, making timing more critical than the size of the home [2][5]. - O'Leary points out that closing costs for purchasing a home typically range from 2% to 5% of the loan amount, and selling a home incurs agent commissions of about 5% to 6%, indicating that these costs are significant and front-loaded [5]. - Data from Bankrate shows that, given current prices and rates, renting is generally cheaper than buying in most large U.S. metropolitan areas for first-time buyers, reinforcing the argument for renting in transitional phases [6].