7 Top Real Estate Investment Strategies for 2024

Last Updated: 

July 9, 2024

Although the market is always changing, real estate investment is a tried-and-true way to make money. It is critical to innovate and adapt since the industry is being impacted by market circumstances, economic variables, and rising trends. Various tactics, including real estate crowdfunding and more conventional rental properties, may provide opportunities to savvy investors in 2024. Here are 7 of the best approaches to consider for this year.

Key Takeaways on Top Real Estate Investment Strategies

  1. Buy and Hold Strategy: Invest in rental properties and hold them long-term to benefit from increasing property values and consistent rental income.
  2. Real Estate Crowdfunding: Pool resources with other investors via platforms like Fundrise and RealtyMogul to fund real estate projects, allowing smaller investors to participate.
  3. Fix and Flip Method: Purchase undervalued properties, renovate them, and sell for a profit, capitalising on areas with high demand and numerous older homes.
  4. Short-Term Rentals: Leverage platforms like Airbnb and Vrbo to rent properties short-term, benefiting from rising travel demand and potentially higher income than long-term leases.
  5. Commercial Real Estate Investments: Invest in office buildings, retail spaces, and industrial properties to achieve high returns, value appreciation, and steady income.
  6. Real Estate Investment Trusts (REITs): Invest in REITs for liquidity, diversification, and regular dividends without managing properties directly, with strong performance expected in 2024.
  7. Opportunity Zones: Invest in economically distressed areas to receive significant tax incentives while contributing to community revitalisation and potential high returns.
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Acquire and Maintain Residential Real Estate

In real estate, the buy-and-hold strategy is among the oldest and most reliable approaches. According to Top Real Estate Agents - Reynolds Team, “Buying rental homes and keeping them for a long time is what this is all about. The plan is to let the property grow in value while collecting rent consistently.”

Factors such as increasing home costs, lifestyle choices, and urbanisation continue to fuel a robust demand for rental properties in 2024. Zillow just reported that average U.S. rents rose 10% in 2023, and they anticipate this trend to continue. Investing in residential homes may allow one to take advantage of this demand and generate continuous income flow.

Crowdfunding of Real Estate

Like previous years, 2024 will see a further rise in the popularity of real estate crowdfunding. This technique allows investors to pool their resources to fund real estate projects, whether they are residential buildings or commercial properties. Individuals with smaller sums of money can easily invest via platforms such as Fundrise and RealtyMogul.

We anticipate a compound annual growth rate (CAGR) of 58.3 percent for the worldwide real estate crowdfunding industry between 2021 and 2028. For investors open to this new strategy, this meteoric rise represents a substantial opportunity.

Fix and Flip Method

The "fix-and-flip" method involves buying cheap houses, making repairs, and then selling them for a profit. If executed well, this strategy may bring in a lot of money, but it requires an eye for potential and knowledge of renovations.

Particularly in regions with a large supply of older homes and significant buyer demand, the fix-and-flip market is predicted to maintain its strength in 2024. The typical flipper made $67,000 in 2023, as reported by ATTOM Data Solutions. When calculating the net profit, it is crucial to take into account refurbishment expenditures, holding charges, and transaction fees.

Vacation Homes and Short-Term Rentals

Investment in short-term rentals has grown in popularity and profitability due to the proliferation of websites like Airbnb and Vrbo. Investors may often make more money by renting out houses for shorter periods rather than the more conventional long-term leases.

As travel demand continues to rise after the pandemic, the short-term rental sector is set to increase in 2024. After a disappointing $107 billion in 2023, AirDNA predicts that worldwide short-term rental income will soar to $115 billion in 2024. Investors in highly popular tourist spots and metropolitan areas have a fantastic opportunity with this expansion.

Investments in Commercial Real Estate

Commercial real estate (CRE) investments, especially in office buildings, retail space, industrial property, and multi-family apartment complex sectors, may provide substantial profits. They may also provide diversity, growth in value, and a steady stream of income.

Real estate in highly desirable areas is where investors should put their money. In order to minimise risk and provide steady revenue, it is necessary to understand lease agreements and tenant creditworthiness.

Associated with Companies

It is possible to invest in real estate via Real Estate Investment Trusts (REITs) without having to deal with the day-to-day administration of individual properties. Across several industries, real estate investment trusts (REITs) own, manage, or provide financing for properties that generate revenue.

Liquidity is a crucial advantage of real estate investment trusts (REITs), as these investments are traded on main stock markets. Shares, like stocks, may be bought and sold simply by investors. Real estate investment trusts (REITs) also provide diversity and the chance to receive dividends on a regular basis.

The solid foundations in industries, including healthcare, industrial, and residential, could propel real estate investment trusts to good performance in 2024. In 2023, the FTSE Nareit All Equity REITs Index had a return of 11.8%, which is considered a strong performance in the sector by Nareit. Real estate investment trusts (REITs) provide investors with exposure to both the ownership and management of assets and the financing of income-producing real estate.

Areas of Potential

Investments made in economically depressed regions may take advantage of substantial tax breaks thanks to Opportunity Zones, which were created by the Tax Cuts and Jobs Act of 2017. Opportunity Zone investments help revitalise neglected neighbourhoods while investors may postpone or even lower their capital gains taxes.

Investors seeking to optimise earnings while taking advantage of preferential tax treatment continued to show interest in Opportunity Zones in 2024. According to the Economic Innovation Group, Opportunity Zone funds have raised more than $75 billion since the program's start.

Investors may increase their chances of success with this tactic by carefully studying the designated Opportunity Zones and putting their money into places with strong development plans and room to expand. Forming partnerships with seasoned local developers and using existing community connections may also increase the likelihood of a profitable venture.

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