New to RE and Looking for First House

[Timothy Kwaak]

Hey BP community! My name is Tim and I've been following Bigger Pockets for quite some time now, and finally it's time to join the community! I've been interested in real estate for a while and now with my girlfriend we're looking into buying our first house. With the market being as crazy as it is, I still believe it's possible to get into a primary residence to start our journey. Especially with rising inflation and this being our first large investment we're really trying to find a good wedge deal to help hedge against inflation and start a portfolio. We're looking up in the North Jersey area and are looking for anyone who has experience in that market not only as an agent but as an investor themselves. Can't wait to hear back from you guys and can't wait to get started!

[Max Vishnev]

Hey Timothy, buying real estate is inherently risky, regardless of where in the market cycle you buy.  But, without risk there are no rewards.  And with headline inflation now at 6.8% as of Friday, while 30 yr mortgage rates are still hovering in the low 3s (at least for now), this is a very unique time to buy and lock in still near-record-low fixed cost of debt.  Further, you correctly point out that real estate is a good way to hedge inflation, but I want to add that buying MF rental properties (even as a house-hack) offers not one but TWO inflation hedges -- inflation-driven price appreciation AND rental income appreciation, since rents rise with inflation as well.  

Is it tough to be a first-time buyer right now?  Yes.  Is it still possible to find deals that make sense?  Definitely.  As long as you don't expect to get something way below market value.

Just my two cents as a very active Realtor in Northern NJ that works with a lot of first-time buyers/house-hackers.  I'm an investor myself.