Are you planning to invest in your first property or want to have more landed property? If so, the first thing you need to think about is where you’re going to invest. However, real estate has become a highly investible activity for investors, the top 3 significant consideration in real estate investment continues to linger; Location, Location, Location.
Rural and urban areas are economically, socially, and environmentally interlinked spaces. Urban development is generally unthinkable in the absence of rural development.
Billions of dollars are invested into real estate annually. There is no doubt about this reality since real estate is considered to be a great investment option. On its own, real estate offers cash flow, ROI, equity building, tax breaks, competitive risk-adjusted returns, and a hedge against inflation.
At the same time, the controversy of the outperformance of settlement, between the rural area and urban areas continues to linger. These real estate settings are so different from one another, each with unique benefits and drawbacks.
Therefore, when contemplating the ultimate question; Where should I invest in?” you might want to consider the specialty of each of these settlements, then relay it down to your investment goals.
Urban Settlement
An urban area is a human settlement with a high population density and infrastructure of the built environment. Urban areas are created through urbanization and are categorized by urban morphology as cities, towns, conurbations, or suburbs. The creation of the earlier predecessors of urban areas during the urban revolution led to the creation of human civilization with modern urban planning, which along with other human activities such as exploitation of natural resources led to a human impact on the environment. This is due to conditions created by a greater level of industrial activity in a given region. However, a favorable environment for human capital development would also be generated simultaneously.
At the same time, the market is stable in urban neighborhoods. There isn’t a boom or bust mentality. Demand is not likely to decrease. Also, an investor with an interest in residential investment can leverage the good rental market size in an urban area. There are lots of people who need housing. As such, investing in urban property can be a very good decision.
Rural Settlement
A rural area is a geographic area that is located outside towns and cities. Typical rural areas have a low population density and small settlements. Agricultural areas and areas with forestry typically are described as rural.
In rural areas, because of their unique economic and social dynamics, and relationship to the land-based industry such as agriculture, forestry, and resource extraction, the economics are very different from cities and can be subject to boom-and-bust cycles and vulnerability to extreme weather or natural disasters, such as droughts. These dynamics alongside larger economic forces encouraging urbanization have led to significant demographic declines, called a rural flight, where economic incentives encourage younger populations to go to cities for education and access to jobs, leaving older, less educated, and less wealthy populations in the rural areas. Slower economic development results in poorer services like healthcare and education and rural infrastructure.
However, investing in a rural property appeals to many investors, such as those looking to spend less, purchase multiple properties, or pay fewer taxes.
An investment in rural areas can be an intelligent option. Investors have easy access to a range of services that will improve the overall quality of investment.
Many people purchase a rural property as a long-term planning scheme, due to the possibility of revolution into an urban settlement when more inhabitants settle in. The population growth every year means cities and urban areas are regularly expanding. If an investor can be very strategic in their rural property purchase location, then they can be able to buy an investment for cheap and sell it for much higher returns in the long term.
