Here’s When To Buy a New House, According to Kevin O’Leary

Navigating the real estate market can be challenging , whether you’re a first-time homebuyer or someone who’s ready to buy again. Not to mention the very personal decision of when would be the best time to buy a house — or where.

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Kevin O’Leary, an investor who’s well known for his role on “Shark Tank,” shared his personal insights on this topic via YouTube . O’Leary, who earned the nickname “Mr. Wonderful” for his candid financial wisdom, has a background in investing and financial services. His perspective is pretty straightforward, but may not be the most realistic option for everyone, depending on your situation.

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Don’t Base Your Decision Solely on What’s Happening in the Housing Market

Mortgage interest rates are always fluctuating, but lately, they’ve been on the higher end. There’s a temptation among homebuyers to time their purchases with what they perceive as the “right” (often “perfect”) market conditions.

However, O’Leary advised against this singular focus on the housing market. He points out that if you get a floating rate mortgage and rates go up, this could negatively affect your finances and cash flow.

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Ask Yourself ‘Do I Actually Want To Have a Mortgage?’

O’Leary poses this very important question in his video hinting that some people may want to rent for a while first to see how they like their area. Mortgages most often run into the hundreds of thousands of dollars, so he explains that this expense can seem very considerable.

If you choose to rent for a while first, this is also a good time to look at your finances and make sure your income is stable. This will prove you can comfortably pay for your current expenses and take on the extra cost of a mortgage.

It Doesn’t Matter What Interest Rates Are, Debt Is Debt and You Have to Pay It Back

Interest rates often dominate discussions around mortgages, with homebuyers eager to lock in a low rate to save on overall costs. O’Leary reframed this perspective by urging people to acknowledge that no matter the interest rate, a mortgage is still a significant level of debt that must be repaid.

“Try and avoid debt in the first place,” he says in his video. “Don’t fall in love with being in debt through a mortgage, but fall in love with being debt-free because it feels way better.”

While O’Leary’s stance implied that people should just try to avoid mortgage debt altogether, the alternative option is to buy a home in cash. However, this is not realistic for many — especially those who live in areas boasting a high cost of living.

Even if this option isn’t a reality, there are still ways to try to pay your mortgage off early: buying a smaller and more affordable home, earning extra money and making additional payments toward the principal.

This article originally appeared on GOBankingRates.com : Here’s When To Buy a New House, According to Kevin O’Leary