There are two theories about purchasing a suburban house – it is too late to be a part of the suburb investment boom and the potential outperforming capabilities of suburban houses. No matter which theory you believe, before investing in any suburban real estate, you should know all of the advantages and disadvantages.
Should You Consider Investing in Suburban Real Estate?
Pros of Investing in a Suburban Real Estate
· More Space
If you don’t like living in a congested place, purchasing a house in a suburban area can be the right investment for you. As the per square footage price is comparatively lower in the suburbs, you can purchase a large area at a lower price. As a result, you can build a large house with all your desired features, such as a lawn, courtyard, or swimming pool.
· Lower Crime Rates
It has been found that urban areas have higher crime rates than suburban areas. So, if you want to live in a peaceful and safe environment, purchasing a house in a suburb will be a no-brainer.
· More Long-Term Renters
In urban areas, people tend to have short-term rental agreements. But in the suburbs, it is the opposite. Usually, in suburban areas, people prefer to have a rental agreement of more than a year. And when you have such a long-term tenant, it nearly guarantees that the house will be in good condition.
Cons of Investing in a Suburban Real Estate
· Limited Public Transportation
Usually, suburban areas have limited public transportation. This won’t be a big issue for people with personal vehicles. However, those who prefer walking to nearby amenities or don’t own a personal vehicle, it can be challenging for them. Besides, traveling during the odd hours will be very difficult if the suburban property is far away from the highway. So, if you invest in suburban real estate, ensure that it is not far away from the main highway. Otherwise, the property will become unappealing, which will limit the rental pool.
· Lack of Emergency Services
When you live in a city center, you will find all the emergency services like hospitals, police stations, fire stations, etc., close to you. But when you are living in a suburban area, you won’t get access to these services easily. Also, there are limited options for entertainment. So, if you like going out every night or have older family members, it may not be the right idea to purchase a house in a suburban area.
· Limited Rental Pool
People living in suburban areas usually own a house. So, by default, there will be a limited rental pool. Because of this, finding new tenants will be challenging.
Also, if you are looking to get higher rents from your rental property, investing in a suburban area won’t be financially viable. Because people who live in a suburban area want lavish houses but at a reasonable rent.
Conclusion
Whether you want to invest in a suburb property for rental purposes or personal use, it is still a good option and has the potential to give you maximum returns.
