First time home buyer advice

[Nicholas Bagliani]

First time buyer here, looking for advice.

Like most first time buyers currently, I’m heavily questioning buying if now is the right time to buy. 

I am 29, single, employed, have ample savings, a full VA loan, and am pre approved for 550k, and looking within an hour of the dc metro area, ideally Harford county MD due to the good schools and military bases near by.

I personally hear from tons of people who think the market will come down, due to the struggling middle class and the fact that it will get worse. I agree with that. 

However.. My concern.. if these big corporations are buying up a majority of houses, assuming there’s no legislation in place to stop them from doing so or sell them off, now IS the time to buy before they take everything from us over time.. it DOES seem like now or never.

Regardless of recession and lay offs in the future, these big corporations will just buy more, they’ll never run out of money. and we will all have NOTHING.

Anyone else agree/disagree?

[Kevin Sobilo]

@Nicholas Bagliani, at ANY given point in time people can come up with several reasons why it isn't a good time to buy. Looking back with hindsight you won't see that because hindsight is 20/20 but its true.

A few comments on the points you made specifically:

1. "The market will come down". Keep in mind the market for you is where you are looking to buy. All real estate is local! Prices might go WAY WAY up even when national averages are going down or vice versa. Local markets are impacted more strongly by local factors than national ones such as changes in interest rates.

2. Big corporations buying properties isn't even a thing in many markets. Even if they are in your market, that should not change whether you should or can buy. A house that makes an idea rental is often different than ones that makes the ideal forever home. Yes, in some markets big companies buying properties can have a noticeable affect, but it isn't likely to be forever or as pervasive as you think at this moment.

Also, companies buying investments want to make money. They aren't just buying to buy and lose money. So, it isn't that they will buy up everything. They do have limits.

It sounds like you want to buy a primary residence. Does it have to be a "smoking deal"?!? It doesn't! If you plan to stay there a long time 10+ years then likely the value will be the same or likely greater even if prices soften in between. Think of it this way, if you stayed in the home 30 years and paid it off, it would be a good deal for you no matter the final value. You are buying the house for your own use more than for an investment.

If you plan to be there LESS than 7 years, then I might consider NOT BUYING because if prices stay the same it will take nearly that long to pay down a mortgage enough to cover commissions and closing costs to sell and break even.