So you’re thinking of home remodeling because you want to make your home nicer during a pandemic. Or you are currently stuck in home remodeling hell and wondering why it’s taking so long. I’m so sorry! Let me explain to you why home remodeling always takes longer and costs more than expected.

I’ve done four major home remodels before. None of them were pleasant experiences. All projects took longer than expected. After my first two home remodeling projects, I finally wisened up to the game some general contractors play to extract as much money from homeowners as possible.

If you are planning on buying a property and remodeling it, please know that the permitting and remodeling process can be a very big PITA. If you are not good with dealing with stress, buying an already remodeled home may be a better bet.

Let me share with you one home remodeling example that demonstrates the opaqueness of home remodel pricing.

The median homebuyer age in America is getting older and older each year. With the goal of increasing our asset-to-liability ratio to 5:1 or greater by the time we retire, buying a home too late may pose problems. Let’s do a little digging into why this is.

The median age of first-time homebuyers is now 33. This is the oldest age on record dating back to 1981, according to the National Association of Realtors. Back in 1981, the median age of first-time homebuyers was between 28-29.

It’s clear that the rising cost of homes, the rapid increase in college tuition, and the delay in household formation all have something to do with the first-time homebuyer age ticking up. Thankfully, we’re all living a little bit longer as well.

The median age of first-time homers increasing by ~14% since 1981 is interesting. However, what’s even more interesting is the fact that the median age of all homebuyers is now 47. This is a 51% increase over the median age of 31 in 1981. What’s going on here?

There will be distressed asset opportunities in commercial real estate. Now is the time to get smart. But before we do, let’s rewind and review how smart we’ve already gotten so far.

On March 16, 2020, as someone interested in buying a home, you read How Does Real Estate Perform When Stocks Melt Down. From this article, you learned that real estate tends to significantly outperform when the S&P 500 is down between 10% – 20%. If you bought residential real estate in 2Q2020, you’re likely doing well as demand for residential real estate continues to grow.

On March 18, 2020, you read How To Predict A Stock Market Bottom Like Nostradamus and decided not to freak out. Instead of selling stocks, maybe you even bought stocks. If you did, you’re sitting pretty given the NASDAQ and the S&P 500 rebounded to all-time highs.

If you’re still looking to build more wealth, your attention should now be focused on investing in lagging asset classes. In particular, I’m interested in investing in distressed assets in commercial real estate.

According to Real Capital Analytics, commercial real estate valuations fell by 35% between August 2008 and June 2010. Despite the bull market in stocks and residential real estate so far, history could repeat itself. Therefore, we should be preparing now.

To help us get smarter about distressed asset opportunities, I’ve asked CrowdStreet, a site sponsor and one of the top real estate crowdfunding platforms to answer some questions.

CrowdStreet is focused on finding promising real estate investments in 18-hour cities where valuations are lower, rental yields are higher, and potential growth is stronger due to demographic shifts to smaller cities. The site is free to sign up and explore.

A golden opportunity to buy real estate during the pandemic is upon us. With mortgage rates falling to all-time lows, the S&P 500 at all-time highs (as of 4Q2020), and a lot of people still fearful, chances are higher you can get a better deal.

Everyone is spending more time at home now. Therefore, the intrinsic value of a home has gone way up. Yet, given mortgage rates have collapsed, affordability is up.

With the mass media hyping up the demographic shift away from big cities to small cities, it’s time for savvy investor to go the other way and focus on big city real estate again.

That said, secondary cities, also called 18-hour cities are also very attractive given lower valuations, higher net rental yields, and less overall density.

Let me explain in more detail why I believe now is the time to buy real estate in again for 2021 and beyond.

For most people, real estate will always be more desirable than stocks. In this article, I will share why real estate will likely build you more wealth over time. Real estate will also most likely provide more happiness. Owning an asset that provides more wealth and happiness is tough to beat!

I’m all for owning both real estate and stocks to build wealth. However, I’ve noticed there’s been a growing amount of rage against homeowners and real estate investors.

There are a lot more voices saying that owning real estate is a terrible way to build wealth. Some are even rooting for real estate investors to lose money.

You don’t see this type of schadenfreude and rage against renters or stockholders by homeowners. I want to address this issue full on so you can make better financial decisions.

The best home buying rule I can offer you is my 30/30/3 home-buying rule. If you follow my home buying rule, you will have a greater chance of surviving any financial downturn. Even if you just follow one part of the rule, you will also be able to enjoy your property more because you will be less stressed about your finances.

Way too many homebuyers overextended themselves during the 2008-2009 financial crisis. As a result, most of us paid the price. Having your neighbor conduct a short sale or foreclosure isn’t good for your wealth even if you borrowed well within your means.

There is a lot of demand for real estate during the pandemic. You can get a 30-year fixed-rate mortgage for under 3%. The stock market is volatile. Finally, we’re all spending way more time at home.

It is only logical that interest in real estate has increased. However, this is all the more reason to stay disciplined.

Just look at this national home price appreciation chart during a pandemic. It is accelerating!

For those of you buying a home during a period of maximum uncertainty, please follow my 30/30/3 home-buying rule. Not only will the rule save you from a lot of stress, but it will also better protect our economy.