You may remember when we shared news that Americans viewed real estate as the best long-term investment in 2022, according to a Gallup poll. Two years later, Americans still consider real estate as a good investment, so let’s review four ways to invest in real estate in 2024 that could help you grow your portfolio.
Become a homeowner.
For starters, one of the best ways to invest in real estate in 2024 is to become a homeowner. Whether you’re a first-time buyer or a repeat buyer who took a break to rent for a while, investing in your own home offers several benefits.
For instance, home owners who build equity may qualify for lower mortgage rates, lower downpayments and certain tax deductions.
Become a landlord.
Another solid option is purchasing a residential rental property and becoming a landlord. A good way to find the right kind of investment property is to work with an experienced local Realtor, who will be familiar with the local market and the average sales prices in the neighborhood.
Types of properties to consider as rentals range from single-family homes to duplexes to condos.
Invest in a REIT.
Are you wondering what REIT stands for? To clarify, it refers to real estate investment trusts. As public companies, REITs own, operate or finance real estate assets. Then they sell shares of stock, for example, and pay out nearly all of the after-tax profits to their investors.
This option is more hassle-free than being a landlord directly. It’s also a good way to invest within a budget.
Consider flipping houses.
While this route might require more capital, time and general real estate knowledge, flipping houses is a common strategy to maximize your profit from a real estate investment. Often times, flipping a home includes renovations, construction and an extra risk.
But you can minimize your out-of-pocket costs by finding houses that won’t need major updates and are located in up-and-coming areas, for example.
Summary
Now that we’ve shared four basic ways to invest in real estate in 2024, are you ready to talk about your options more in depth? Contact Ryan Roberts, your trusted local expert, to help you find out what option may work for you and what properties are available. Keep reading our blogs for more real estate tips and local market trends.