'Shark Tank' Investor Kevin O'Leary Says If You Make the Average $70K Salary, Don't Buy A House— Rent A 'Small' 1,500 Square Foot Home Instead

Core Viewpoint - Kevin O'Leary advises young adults to rent instead of buying a home, emphasizing the importance of waiting until significant life changes occur, such as starting a family [1][4]. Group 1: Renting vs. Buying - O'Leary suggests that young adults should start by renting, particularly if they have an average salary of $70,000, and keep their living space small, ideally under 1,500 square feet [1]. - He warns against jumping into homeownership unless buyers plan to stay in the home for at least five years to avoid financial losses from closing costs and other expenses [2][3]. - Renting is framed as a strategic decision that allows flexibility and time to determine long-term living preferences and needs [6]. Group 2: Financial Considerations - The five-year rule is highlighted as a common benchmark among financial experts, indicating that it takes time to build equity in a home due to high initial costs [3]. - O'Leary points out that with current mortgage rates around 7%, even modest homes can be financially burdensome for individuals earning $70,000 [5]. - He emphasizes the importance of keeping housing budgets aligned with income to avoid overextending financially [5].