by Cassie Steele –
Rural properties present a unique challenge for investors. They have certain things going for them, but they also have some drawbacks that investors need to be aware of going in. Rural properties tend to be much cheaper than urban properties, for example, but they also tend to sell slower because of that same limited audience.
Rural properties can be attractive to investors for a few different reasons. Because of their limited audience, there often isnt as much competition for buying the properties. As a result, you might be able to snag a good deal on something without any competition trying to outbid you. On top of that, theyre often cheaper, as we said above.
Investors should remember that land isnt going anywhere, but no more of it is being created, either. If you can snap up a property thats in or near a growing area, you could make a significant profit if or when that land becomes in-demand.
Since country properties sell very differently from urban properties, they can trip up investors who are only used to the city. Like we said above, rural properties sell more slowly because of their limited audience, and that small audience can drive the price lower, too. Rural properties can also vary widely in price. There arent always comps nearby to determine a fair price, so whats a good deal versus a bad deal can require a bit more research.
As a general rule, rural properties can be a good investment if land and housing values are rising. It can be difficult to find buyers for very rural country properties, but if you do a little research and find some that might be of interest to developers in the future, you can secure a decent profit down the line.
If you need to tempt buyers out to your properties, you can try upgrading them with new technology, attractive finishes, or other useful upgrades. No matter where your investment is located, its more likely to sell if its move-in ready or newly renovated so you can use that to attract buyers further out than they normally would look. All in all, as long as investors keep the market and the area in mind when making a purchase, they can be a very profitable investment.