Kevin O'Leary: Use This Test To Decide If You Should Rent Or Buy A House | CNBC Make It.

"Shark Tank" investor Kevin O'Leary explains the best way to decide if you should rent or buy your home and gives a rule about your income.

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Kevin O'Leary: Use This Test To Decide If You Should Rent Or Buy A House | CNBC Make It.

[Evan_Adams]

FINALLY AFTER TAX INCOME. No one ever says that!

[AmoraLili]

So basically I should rent forever, got it. 😂

[xMarsonearth]

He probably just prevented thousands of divorces

[drowsy_mouse]

there's a lot of other costs when buying a home than just the mortgage payment...

[hermanruiz]

How about if you are single...buy a duplex and rent out a unit to cover most if not all the mortgage. Building passive income....just saying

[JJs_playground]

1/3 after tax for mortgage (or does this also include, property taxes, school, taxes, heating and hydro)? Or strictly mortgage payments?

[tpomphrey]

I'd love to have a conversation with this guy!!! I love the way he tells it the way it is.

[connerwilson]

I like this advice because it focuses a lot more on the emotional and social aspect of things, not purely financial. You need to account for your family and your relationships by taking care of your pocketbook

[OrzoNerf]

What about buying duplex and renting other side out to cover majority/all rent?

[Bobby.Kristensen]

I spend 11% of my after tax income on renting. So nice!

[flakgun]

Lol 1/3 of my after tax income? The average American would have to move to rural Kentucky for that

[brenden]

If you are young buy and rent out rooms to friends. They will pay your mortgage. That's what I did, got married at 32 house was paid off.

[lmccahill]

So people who are never going to raise children should just rent forever? That is ridiculous!

[alexbob]

How about if your're single and want to buy a house to rent it out?

[tinly]

This has been the wisest 1 minute 29 seconds of my life...

[zecatela]

Great, thoughtful advice! Thanks Mr. O'Leary! Always appreciate grounded and sensible approaches to life.

[michellemarie]

Also it greatly depends on where you live, where I live in the middle of nowhere, buying a house is mostly cheaper than renting, I hate renting, buying seems more stable to me especially if I get older and assuming the mortgage is low and almost paid off cause if I get older or if something happens I'll still have a roof over my head and I cant get evicted

[Hungrymor]

Could someone provide an example please !?

[ybergik]

Why on earth should only couples with babies buy a home? That's absurd. The correct advice is: If you are certain you will stay in one place for 7+ years, you should buy, but still keep the cost within 1/3 of your income as Kevin correctly states.

[DavidM_]

16 second video, straight to the point :^)