December 26, 2023

Ryan Bellus sheds light on the top three fears that military home buyers often encounter in today's real estate landscape. As real estate agents catering to this unique market, it's crucial to understand and address these concerns effectively. In this blog post, we will delve into each fear and explore success stories and strategic insights to overcome them.

Financing: The VA Home Loan Advantage

Financing stands out as a significant concern for military home buyers, with the fear of hefty down payments looming large. Ryan emphasizes the invaluable tool at their disposal—the VA home loan. Unlike traditional loans, military personnel can secure a home loan with 0% down, thanks to the employer's guarantee of payment. This eliminates the need for a substantial upfront payment, making homeownership more accessible for VA buyers.

Deployment Schedule: Navigating Options During Absence

The second fear discussed is the impact of deployment on housing situations. With service members often away for extended periods, families are left grappling with housing decisions. Ryan suggests a strategic solution—leveraging short-term rentals. By renting out their homes during deployment, military buyers can not only maintain their housing allowance but also potentially generate additional income. This flexible approach provides financial stability during deployment, addressing a common fear in the military home buying process.

Property Value Fluctuations: Weathering the Storm

Property value fluctuations pose a genuine concern for military home buyers uncertain about the future. Ryan offers a historical perspective, highlighting market trends over 10- and 30-year periods. Acknowledging the cyclical nature of the real estate market, he encourages a long-term perspective. To counter the fear of lower property values during a PCS move, Ryan recommends holding onto the property. Alternatively, renting it out turns the mortgage payment into an investment covered by rental income, mitigating financial risks.

Success Story: Overcoming Fears in 2020

To illustrate the effectiveness of these strategies, Ryan shares a personal success story. In 2020, faced with the fear of buying at the market peak, he purchased a property at $400,000 using a VA loan with no money down. Despite initial concerns, he took strategic steps, refinancing after 12 months to lower the interest rate. The result? A significant increase in equity, demonstrating the potential for success even in uncertain times.

Conclusion: Empowering Military Home Buyers

In wrapping up the podcast, Ryan encourages military home buyers to confront their fears and seek solutions. The VA home loan, short-term rentals during deployment, and long-term property investment strategies are powerful tools at their disposal. By sharing his own journey of overcoming fears and achieving success, Ryan instills confidence in the military home buying process.

As real estate agents working with this niche market, understanding and addressing these fears is pivotal. By incorporating these insights into their approach, agents can guide military home buyers toward successful and confident real estate transactions.