Real estate in rural areas is seen as a long term investment that has a high chance of appreciation. There are way too many people living in urban areas. We can already see people making a switch to the rural areas which are less populated and are much more spontaneous with what you can do with them as compared to the urban areas. You are not limited to using them as residential properties, they could serve as commercial farms and farmlands.
One of the major benefits of investing in rural areas is the ability to acquire a vast array of land which in the long run will become cash cows. With an investment in rural areas, it already feels like you are at a disadvantage as opposed to investing in urban areas but your focus needs to be on value-adding characteristics of the properties which is what you will leverage on selling or renting the property. These characteristics include location, accessibility to utilities, roads, transport facilities, water and in the case of purchasing farmland or soil type, minerals, water supply, rainfall, etc.
There are a ton of reasons why you would want to invest in this area. Perhaps, for the sake of acquiring farmland, a tight budget, whatever the reasons might be, you need to do your due diligence so you do not make the wrong investment. There is a large number of data available to us now, you could do your research both online and offline.
If you intend on using the land as a farm you need to do your research on the soil type, the climate, water supply, etc. Just because it is a rural soil does not automatically make it a good soil. You also need to factor in the crop(s) you would like to grow on it and if it will be compatible with the soil type. You need to consider how you will commute with your harvest. Would it still be worth the investment if you factor in this all of these things?
With a vast land comes trespassers. It is important to have a definite and visible way to demarcate your land, know its limits so you do not trespass into another’s or vice versa. Make sure all documents are signed with the government and you could fence the property with blocks of cement or barbed wire to mark your territory especially if you will not be present at all times or you are not yet ready to start work on it.
The fact that lands are relatively cheap is always a nice attraction and people always jump into it not realizing that they will incur a lot more expenses. If you have to fence the place, you will spend a lot of money, employing security to watch over your land will cost you money, maintenance of such large space will cost you a whole lot of money to employ people to fix it.
Rural properties are much easier to buy than it is to sell because people rarely ever visit such areas and because of that you have much fewer people trying to rent their properties. You might have to employ the services of an agent, that will market the property and find buyers. You could put it on a platform like AirBnB so it just does not remain isolated with no use.
Buying a modern house in a rural area with the hope of renting it might not be very realistic as people leaving the urban areas want a bit of adventure and will be more comfortable with a more down to earth living space. The type of property you intend on getting should help you decide if the rural area is a good fit. Farmland, livestock land, farmhouse, modest residential properties are very typical in rural areas. If you have a luxurious modern house, you can AirBnB it out to tourists.
Investing in properties in rural areas might just be the best decision you ever made. But as Will Rogers said “don’t wait to buy land, buy land and wait”. Reaping the benefit of owning a rural property might not happen instantaneously but if you have selected an area that has a lot of potential, your investment will be long term and you can just fold arms and watch it get profitable over time. You can do your research based on the aforementioned points to determine if it is still the right fit for you. Also, like every other investment, make sure to have an exit strategy, so you can get out of it if it not working for you.
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