Kevin O’Leary: Unless you can pass this two-question test, don’t buy a home

10 Responses to Kevin O’Leary: Unless you can pass this two-question test, don’t buy a home

1. 

   Mike February 21, 2018 at 5:19 pm #

   Renting is the #1 reason why I left Los Angeles.

   Renting is fine when during our teens and mid-twenties. Or if, for whatever reason; someone is not in a position to buy. Otherwise, life long renting is for fools.

   Ones marital status is inconsequential.

   The Real Estate Market is Prima Facie evidence of rigged collusion. Current Real Estate prices are artificial bunk. We already had a Real Estate bubble. During this time, housing supply was artificially high due to overbuilding. Now prices are back to bubble levels in a mere 9 years.

   During the bailouts, the banks got to keep the houses AND the bailout money. They are now holding houses on their books and off the market. This artificially inflates their balance sheets and props up landlord parasites.

   Fundamental economics begs the question: What does a house produce? Nothing. A house not a factory. It’s just four walls and a roof. A house is a dead asset. High rents transfer wealth from those who produce (workers) to those who don’t (parasites).

   So make sure you listen to Tom’s advice “boys”. Be good little slaves, keep renting.

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2. 

   Michael February 28, 2018 at 10:21 pm #

   I agree It is totally rigged

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3. 

   SJ March 14, 2018 at 11:35 pm #

   Well jobs are not stable anymore unless you own a business, independent wealthy, or have a government job so renting is better for most people. I’d rather have an emergency fund than spend that money on a down payment then be stuck if I ever lost my job and had to move.

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4. 

   Bob March 21, 2018 at 8:48 am #

   I owned a house for 25 years, and after selling it for 4 times what I paid for it – after adding up the down payment, interest, maintenance, principal, property taxes, improvements I paid over the 25 years – I got all that money back and more. I lived rent free for 25 years.

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     SJ March 25, 2018 at 5:54 pm #

     Well you were VERY lucky to buy at a time when real estate prices were not inflated assets. Now buying a home is pure insanity unless you are filthy rich or have a secure job.

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       Tom Leykis March 26, 2018 at 10:40 am #

       Luck had NOTHING to do with it. Hard work, devotion to saving, and due diligence DID.

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         Anthony DeHart October 26, 2018 at 3:46 am #

         I bought a house in 1986 for 54,000 and sold it in 2002 for 249,900 then bought my 2nd house in 2003 for 105,000 and sold it for 220,000 in 2007 and in 2009 at the start of the recession I bought a foreclosed 4bd 2600 sq.ft home and worked the bank like a used car lot and bought it for 137.000 and currently it’s worth 680,000 granted I live in Bend Oregon and live where you vacation but thanks to my real estate dealings and some light work I did myself on my homes I’ve made over 3/4s of a million dollars in 30 years and pay under a thousand dollars a month for my house payment included taxes and insurance in a town where a 2bd Rm apt rents for 1600 to 1800 a month SORRY TOM I MUST DISAGREE RENTING KEEPS YOU IN POVERTY. My current interest rate is 3.4% and I went back over the road driving Long haul and rent a room for 1000.00 a month and my house is watched after and my house payment is made. The Kayaker

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         Mick Cassidy September 23, 2019 at 11:29 am #

         I agree with Tom, The saying goes; “the harder i work the luckier i get ” im 100% Irish. Came here with $200 (illegally) in 1984 In 2019 my net is 1.1M Yes buy a house with what ever it takes when your young . Los Angeles County has become completely insane, Looking inland is a wise choice. I predict in 25 years the market will also be in short supply thus driving up your property values to make you a wealthy individual. Prop 13 will protect you as property tax is based off the purchase price.

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       Bob April 6, 2018 at 10:24 am #

       Well, you do need a secure job to keep a home for 25 years, although I had been laid off once and had to struggle to find a new job. But the main factor is that no matter when you buy a house, if you keep it long enough (like 25 years), you will pass through all the ups and downs of the real-estate market and certainly end up higher at the end than at the beginning. Just make sure keep up the payments and don’t get foreclosed on. Same with the stock market over that long a period of time, after 25 years it’s probably going to be a lot higher no matter when you got in.

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5. 

   Wayne flores April 13, 2018 at 5:41 am #

   Kevin o Leary is someone who as inspired me a lot. And yes I have seen a lot of people who don’t buy house although they could for whatever reasons.

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