After several years of diligently saving money, I’m nearly ready to purchase my first home. Because I’ve been thinking about buying a home for so long, I know exactly what I want my house to look like. I desire a place that has three bedrooms and three bathrooms. I also need a quiet space to set up my home office in. I want a massive, walk-in closet in my master bedroom. My master bathroom needs to have double vanities, a tiled, walk-in shower, and a Jacuzzi tub. On this blog, I hope you will discover how to set priorities during your new home search. Enjoy!
If you have decided that you want to start investing in real estate to rent out but are not able to afford properties that are located in your city, then you should consider buying homes in a surrounding rural area. However, homes in rural areas can come with some rental complications that you won't otherwise have to contend with when buying homes in more populated areas. While rural rental homes can earn you a nice return on your investment, you must consider each of these factors before you decide to make a purchase:
Cheaper Properties Sometimes Garner Lower Rent Amounts
Before you make an offer on a rural home that you plan to use as a rental, first, you must determine what the fair market rent for it will be. Some rural areas have few rentals and their rent amounts are higher than you might expect. However, since wages in rural areas tend to be depressed, often the rent amounts are as well. Since you need your rental income to cover your mortgage and also earn you a profit, verify that this will be possible given the average amount of rents in the area before you choose your property.
Fewer Renters are Available to Choose from in Rural Areas
In addition to the amount of rent you can charge for your property, you also need to have renters who want to move in. Since fewer people live in rural areas, you will have fewer renters to choose from for your new house. This can be a problem if you want to be selective about who you rent your house to.
Large Employers Leave and Real Estate Markets Can Tank
Since you are likely purchasing your rental home as a long-term investment, it is important to know where other residents in the area earn their income. For example, if many of the locals all work for one manufacturing plant, then your property value could plummet if that employer leaves the area. However, if there is a variety of different employers in the area, then your real estate investment is more likely to hold its value over time.
Tradespeople are Often Harder to Find in Rural Areas
In conclusion, it is also important that you think about how your rental home located in a rural area will be repaired. There are often few tradespeople available in rural areas and they tend to be expensive. Before deciding to make a purchase offer, first consider what will be done for emergency repairs and routine renovations. For more information, talk to a professional like CJ Real Estate, Inc.