Real estate investors can find opportunities in up and down markets. REITs, multi-family homes, and green construction are solid picks right now. The best words to summarize the real estate investing landscape halfway through 2024 may be “cautiously optimistic.” The Federal Reserve’s pause on interest rate hikes also helps make mortgages more affordable for real estate investors. If you’re feeling cautiously optimistic about the future of real estate or just want to add some stable income to your portfolio, here are experts’ top picks for real estate investments in 2024:

Real Estate Investment Trusts (REITs)

REITs are a popular method for accessing the real estate market without the hassle of direct property ownership. These companies own, manage, or finance income-producing real estate and are required to pass 90% of their income onto investors as dividends. REITs can be private or publicly traded, offering various investment options. As of mid-June, 98.6% of stocks classified as REITs by Morningstar are trading below their fair market value, making it a potentially good time to invest.

Multi-family Homes

Multi-family homes are currently among the best real estate investments, offering diversification under a single roof. Multiple tenants reduce the risk associated with single-family homes, where the sole tenant may not pay. Although multi-family homes require a higher initial financial outlay, they can yield better returns than single-family properties. For new investors, hiring professionals to find tenants can streamline the process.

Green Properties

With climate change becoming a significant concern, green properties are gaining attention. These properties are better prepared for future weather patterns and face lower risks of damage and insurance costs. Green REITs and ESG real estate funds focus on sustainable investments, offering a range of options. Physical properties with certifications like LEED, BREEAM, or Energy Star indicate high standards for energy efficiency and sustainability.

Property Investing Considerations

Before diving into real estate investing, remember that each market is unique. Consider factors such as vacancy costs and repair expenses, which can significantly affect cash flow. Sometimes, the best investment option may be close to home, allowing for easier management and maximizing benefits.

Feel free to connect with the McCarthy + Moe Group for expert advice and support in mastering the ever-evolving real estate market.

Source: money.usnews.com