Why 2024 Is the Best Time to Invest in Property

If you want to expand your real estate portfolio or start one, you may wonder if 2024 is the best time. 2023 was a year marked by one of the highest mortgage rates in two decades, putting many potential real estate investors in a tough spot. Will 2024 be the same, or will it be better?
 

While the mortgage rates are a concern, there are also immense possibilities for someone who wants to invest in real estate in 2024.
 

Mortgage Rates

While 2023 had high rates, they were lower than 1981, which hit 18%. While the rate should not scare you away, there is something else to consider: most potential sellers chose not to sell in the last year. This refusal to sell led to low supply, and prices remained high despite the high rates.
 

However, according to the 2wall Street Journal, mortgage rates are expected to drop in 2024. Most experts suggest that the rates will be at average 30-year rates of 6% to 7%. This means you can get properties at good deals with higher rental fees.
 

Opportunities

In 2024, there will be more opportunities to invest in real estate than ever. Some of these allow you to enter the market and find funding for your portfolio.
 

Buy a Rental Property

A classic strategy to enter the real estate market is buying and leasing out a rental property. It allows you to gain monthly passive income while you do other things. You can also deduct most of the charges associated with the property.
 

While it can be time-consuming, you will enjoy long-term appreciation and positive cash flow. Additionally, if you decide to sell the property or swap it with a similar property, you can defer capital gains using a 1031 exchange.
 

Online Real Estate Investment Platforms

These platforms are new to real estate investment and the investment world. You can use these platforms to find suitable investors for your real estate project. The investors pool their capital, from $500 and higher, to fund projects they want a hand in. The investors get equity or debt in a project and the distributions when the project succeeds. These investments carry more risk than REITs but offer higher potential returns.
 

Flip a House

House flipping is growing in popularity with start-up investors because you can get your money back relatively quickly. It involves buying a property that is discounted due to its state. You then renovate the property and sell it at a profit. However, to pull this off, you must have some money and a reliable team of contractors. You will also need an excellent agent to identify prime properties to flip.
 

REITs

REITs are an excellent option if you want to invest in real estate but do not have the time to keep checking on your property. They work like mutual funds by pooling money and purchasing properties. You will earn a part of the income with other investors. REITs can be especially good if you want liquidity options because they are traded on stock exchanges.
 

For more on why 2024 is the best time to invest in property, visit Team Prehoden at our office in Encinitas, California. Call (858) 217-5400 to schedule an appointment today.
 

https://money.usnews.com/investing/articles/best-places-to-invest-in-real-estate