The Pros and Cons of Investing in Rural Real Estate
Rural real estate offers a proper investment option for people looking for affordable land, long–
term growth, and unique lifestyle opportunities. Unlike urban markets, these rural properties
often come with large acreage, lower costs, and potential for recreation.
However, there are also several challenges, such as limited infrastructure, limited internet, and
the potential for isolation. Before jumping into rural real estate, let’s discuss some of the benefits
and disadvantages.
term growth, and unique lifestyle opportunities. Unlike urban markets, these rural properties
often come with large acreage, lower costs, and potential for recreation.
However, there are also several challenges, such as limited infrastructure, limited internet, and
the potential for isolation. Before jumping into rural real estate, let’s discuss some of the benefits
and disadvantages.
Table of Contents
The Advantages of Investing in Rural Real Estate
Investing in rural real estate offers several advantages. Besides enabling you to start with a low
budget, these opportunities are often limitless in most locations. Here are five upsides of putting
your money here:
budget, these opportunities are often limitless in most locations. Here are five upsides of putting
your money here:
Lower Costs
One major advantage of purchasing rural real estate is the significantly lower prices compared
to urban real estate. Homes and land in rural areas are usually more affordable. As such,
investors can buy large pieces of land for less money.
This lower upfront investment reduces financial risk and creates opportunities for long–term
gains. If you’re looking to diversify your portfolio or develop land for agriculture, this is a valid
option.
to urban real estate. Homes and land in rural areas are usually more affordable. As such,
investors can buy large pieces of land for less money.
This lower upfront investment reduces financial risk and creates opportunities for long–term
gains. If you’re looking to diversify your portfolio or develop land for agriculture, this is a valid
option.
High Availability
Unlike crowded urban markets, you can easily go all in on a property if you’re targeting rural real
estate. That’s because these areas offer a wide selection of properties, from underdeveloped
lands and cabins to farmland.
estate. That’s because these areas offer a wide selection of properties, from underdeveloped
lands and cabins to farmland.
This wide collection of opportunities gives investors more choices and better flexibility in finding
options that match their goals. You can also negotiate favorable deals, especially due to the low
competition.
options that match their goals. You can also negotiate favorable deals, especially due to the low
competition.
Natural Features and Resources
Investing in real estate gives you access to natural features and resources, something you
might not find in urban areas. Many rural properties have features like:
● Forests
● Fertile soil
● Bodies of water
● Suitable climates
might not find in urban areas. Many rural properties have features like:
● Forests
● Fertile soil
● Bodies of water
● Suitable climates
Others have mineral deposits that can be useful for energy generation. Before investing in this
kind of area, go through the Mineral Rights Information Guide to understand how mineral rights
work and when entitled to them.
kind of area, go through the Mineral Rights Information Guide to understand how mineral rights
work and when entitled to them.
Privacy and Space
You can enjoy more privacy and space if you opt for a piece of rural real estate. Unlike most
crowded urban environments, rural properties offer bigger plots of land, greater distance
between neighbors, and minimal noise.
This setting can support a peaceful lifestyle and is ideal for building custom homes. The extra
space you’ll get from rural real estate provides opportunities for expansion, agriculture, and
other ventures, making these ventures pretty rewarding.
crowded urban environments, rural properties offer bigger plots of land, greater distance
between neighbors, and minimal noise.
This setting can support a peaceful lifestyle and is ideal for building custom homes. The extra
space you’ll get from rural real estate provides opportunities for expansion, agriculture, and
other ventures, making these ventures pretty rewarding.
Potential for Recreation
Rural real estate offers good potential for recreation. As a result, it is a valuable investment for
both income generation and personal enjoyment. Properties might include rivers, forests, and
open land that is ideal for hunting, fishing, hiking, and camping.
This natural access improves the quality of life and attracts vacationers or renters looking for
outdoor experiences. Investors can also develop recreational facilities like trails or cabins,
creating extra revenue streams.
both income generation and personal enjoyment. Properties might include rivers, forests, and
open land that is ideal for hunting, fishing, hiking, and camping.
This natural access improves the quality of life and attracts vacationers or renters looking for
outdoor experiences. Investors can also develop recreational facilities like trails or cabins,
creating extra revenue streams.
The Downsides of Investing in Rural Real Estate
Besides the several pros of investing in rural real estate, there are several downsides. For
instance, while it offers probation for recreation, there are risks of isolation as well. Here are five
disadvantages of these investments.
instance, while it offers probation for recreation, there are risks of isolation as well. Here are five
disadvantages of these investments.
Slow Property Appreciation
Rural real estate more often than not appreciates more slowly than its urban counterpart. Unlike
urban areas with high demand and fast development, rural properties struggle to gain value
urban areas with high demand and fast development, rural properties struggle to gain value
over time. Fewer buyers, limited infrastructure, and slow economic growth all contribute to its
value. If you’re looking for quick gains, this is not for you.
value. If you’re looking for quick gains, this is not for you.
Limited Access to Amenities
Rural areas have limited access to amenities. Essential services like schools, hospitals,
shopping centers, and entertainment venues are typically distant or not properly developed.
This limitation can be pretty inconvenient for potential buyers since it makes the property less
appealing, especially for people unaccustomed to urban settings.
shopping centers, and entertainment venues are typically distant or not properly developed.
This limitation can be pretty inconvenient for potential buyers since it makes the property less
appealing, especially for people unaccustomed to urban settings.
Fewer Work Opportunities
There are usually fewer job opportunities in rural areas, and this can be a significant downside
for potential investors. Limited job availability may also create lower demand for housing,
especially from the younger population. This problem can lead to slower property growth,
making rural investments less attractive as compared to their urban counterparts.
for potential investors. Limited job availability may also create lower demand for housing,
especially from the younger population. This problem can lead to slower property growth,
making rural investments less attractive as compared to their urban counterparts.
Limited Internet
Most rural locations face limited internet connectivity, and this can be a major drawback for
potential investors. These sees may lack high–speed broadband, which can stop people who
rely on connectivity for work, entertainment, and education. For instance, people may struggle
to use remote working tools if there is poor connectivity. This issue can greatly reduce the
property’s appeal and marketability, especially in our modern landscape.
potential investors. These sees may lack high–speed broadband, which can stop people who
rely on connectivity for work, entertainment, and education. For instance, people may struggle
to use remote working tools if there is poor connectivity. This issue can greatly reduce the
property’s appeal and marketability, especially in our modern landscape.
Potential Isolation
There’s always a potential for isolation if you’ve purchased a piece of land in a rural location.
Sparse population, distant neighbors, and limited social amenities can cause feelings of
loneliness if you’re considering settling there. For people seeking community interaction, this
can be a problem. So, you must consider this factor as an investor, especially when trying to
market real estate down the line.
Sparse population, distant neighbors, and limited social amenities can cause feelings of
loneliness if you’re considering settling there. For people seeking community interaction, this
can be a problem. So, you must consider this factor as an investor, especially when trying to
market real estate down the line.
Endnote
Before investing in rural real estate, you must carefully consider the potential benefits and risks.
They come with lower costs, privacy, high availability, and natural features. However, they also
appreciate slowly, offer limited access to amenities, have limited internet, and offer fewer work
opportunities.
They come with lower costs, privacy, high availability, and natural features. However, they also
appreciate slowly, offer limited access to amenities, have limited internet, and offer fewer work
opportunities.
