onlyTrustedInfo.comonlyTrustedInfo.comonlyTrustedInfo.com
Notification
Font ResizerAa
  • News
  • Finance
  • Sports
  • Life
  • Entertainment
  • Tech
Reading: Kevin O’Leary: Follow This One Rule If You’re Buying a Home in 2025
Share
onlyTrustedInfo.comonlyTrustedInfo.com
Font ResizerAa
  • News
  • Finance
  • Sports
  • Life
  • Entertainment
  • Tech
Search
  • News
  • Finance
  • Sports
  • Life
  • Entertainment
  • Tech
  • Advertise
  • Advertise
© 2025 OnlyTrustedInfo.com . All Rights Reserved.
Finance

Kevin O’Leary: Follow This One Rule If You’re Buying a Home in 2025

Last updated: May 12, 2025 8:00 pm
Oliver James
Share
4 Min Read
Kevin O’Leary: Follow This One Rule If You’re Buying a Home in 2025
SHARE

Buying a home is always a major decision that can greatly impact your finances for many years to come, but in a tumultuous economy, it’s even more important to be mindful during the homebuying process.

Contents
Only Buy a Home That You Can Comfortably AffordWhy You Should Stick To O’Leary’s Rule of ThumbDo Other Experts Agree?

Be Aware: Real Estate Agents Explain Why You Should Never Invest in These 7 Home Features

Read Next: 5 Things You Must Do When Your Savings Reach $50,000

To ensure your home purchase doesn’t put you in a risky situation financially, “Shark Tank” star Kevin O’Leary shared one golden rule that every homebuyer should follow in 2025.

Trending Now: Suze Orman’s Secret to a Wealthy Retirement–Have You Made This Money Move?

Only Buy a Home That You Can Comfortably Afford

In an Instagram video, O’Leary shared the one piece of advice he would give to anyone looking to buy a home in the current economy.

“My advice to anybody is to make sure that you do not pay more than one-third of your after-tax income towards a mortgage or you’re going get yourself in trouble,” he said. “You may have to downsize your house a little bit to abide by that rule, but if you’re paying more than one-third of your after-tax income to service your mortgage, you’re putting yourself in a very risky position.”

Find Out: Suze Orman: Make This Urgent Money Move Now ‘Before It’s Too Late’

Why You Should Stick To O’Leary’s Rule of Thumb

Putting no more than one-third of your after-tax income toward your mortgage may seem limiting, but it’s a wise way to set your budget.

“You have to live in addition to maintain the home,” O’Leary said in the video. “People think, ‘Oh, I just pay the mortgage payment on a home.’ But no — there’s taxes, there’s monthly maintenance and then there’s the risk of variability of the actual mortgage rate.

“Where people get in trouble is they put up 50% of their family income towards a mortgage because they want their home to be the most important asset, completely forgetting that there’s an additional 10% or 15% just to maintain the home and pay taxes on it,” he continued. “And that really starts to put a squeeze on them.”

Do Other Experts Agree?

Other money experts are generally in alignment with O’Leary’s advice. (Note that O’Leary is basing his rule of thumb on after-tax income rather than gross income.)

“Since housing is typically your most significant expense, keeping it reasonable, such as under 25% of gross income, is a good rule of thumb,” Laura Adams, host of the “Money Girl” podcast, previously told GOBankingRates. “That should allow you to create a spending plan to fund essential financial goals, like saving for emergencies and investing for retirement.”

A widely circulated rule of thumb is the 28/36 rule, which states that your total housing costs should not exceed 28% of your gross income, and your total debt shouldn’t exceed 36%.

More From GOBankingRates

  • 6 Used Luxury SUVs That Are a Good Investment for Retirees

  • How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too

  • 7 Overpriced Grocery Items Frugal People Should Quit Buying in 2025

  • 4 Low-Risk Ways To Build Your Savings in 2025

Sources

  • Kevin O’Leary, Instagram

This article originally appeared on GOBankingRates.com: Kevin O’Leary: Follow This One Rule If You’re Buying a Home in 2025

You Might Also Like

Tips for growing vegetables in small garden spaces

Omaha stationary shop hit with $1K tariff bill — owner supports US manufacturing, but it’s still ‘frustrating’

Why Helen of Troy Stock Plunged Today

3 Cybersecurity Stocks You Can Buy and Hold for the Next Decade

2 Dire Warnings for Auto Investors to Heed

Share This Article
Facebook X Copy Link Print
Share
Previous Article Heidi Klum Goes Topless in a Pair of Form-Fitting Denim Overalls Heidi Klum Goes Topless in a Pair of Form-Fitting Denim Overalls
Next Article Trump says he’s still open to attending talks on Ukraine, unsure about Putin Trump says he’s still open to attending talks on Ukraine, unsure about Putin

Latest News

Trump directs ICE to expand deportations in Democratic-run cities, undeterred by protests
Trump directs ICE to expand deportations in Democratic-run cities, undeterred by protests
News June 15, 2025
Opinion – Trump must stop the AI bloodbath before it’s too late
Opinion – Trump must stop the AI bloodbath before it’s too late
News June 14, 2025
Bass says Los Angeles doesn’t ‘need’ military
Bass says Los Angeles doesn’t ‘need’ military
News June 14, 2025
Majority of Americans disapprove of Trump’s second term, but he leads on immigration: new poll
Majority of Americans disapprove of Trump’s second term, but he leads on immigration: new poll
News June 14, 2025
//
  • About Us
  • Contact US
  • Privacy Policy
onlyTrustedInfo.comonlyTrustedInfo.com
© 2025 OnlyTrustedInfo.com . All Rights Reserved.