Urban Vs. Rural; Where should you invest?

Billions of dollars are invested into real estate annually. In fact, In 2020, it was estimated that more than 1 in every 5 commercial drone shoots would be for real estate purposes.

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, tax breaks, equity building, competitive risk-adjusted returns, and a hedge against inflation.

An analysis of acquisitions in real estate investment valued at a 10.84% growth rate in the first quarter of 2022. In nominal terms, real estate services in the first quarter of 2022 grew by 10.84%, higher by 2.79% points than the growth rate reported for the same period in 2021 and higher by 7.35% points compared to the preceding quarter. Quarter-on-Quarter, the sector growth rate was -22,62%.

However, while real estate has become a highly investible activity for investors, the top 3 significant consideration in real estate investment still continues to linger; Location, Location, Location.

At the same time, the controversy of the outperformance of settlement, between the rural area and urban area still 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.

ALSO READ: Top 4 House-Hunting Mistakes You Should Avoid

Urban Settlement

An urban area is a region surrounding a city. Most inhabitants of urban areas have nonagricultural jobs. Urban areas are highly developed, which means there is a high concentration of human structures including homes, businesses, highways, bridges, and trains. Urban areas can include suburbs, cities, and towns.

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.

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.

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. As such, investing in urban property can be a very good decision but you should always do your homework before you invest.

Rural Settlement

A rural settlement is a site where displaced people live away from cities and towns. The community infrastructure systems are less developed than in metropolitan towns, and the population is frequently reliant on agriculture and pastoral traditions. Internationally varying population thresholds are used to designate rural environments.

However, investing in a rural property appeals to many investors, such as those looking to spend less, purchase multiple properties, or pay fewer taxes.

Given the growth in the population of residents in Nigeria, annually, rural settlement investors can buy a property at a cheap price and sell it for much higher returns in the long term.

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 growth in population 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.

Tags:

Leave a Reply