Rural properties are usually associated with the great outdoors, an escape from metropolitan areas where everything is loud and fast-paced. But even if this is the most popular reason why people see rural homes as a perfect investment for retirement, some buyers get attracted to them without doing extensive research on these properties. Just like with any real estate purchase, buying a rural home has its pros and cons. If you intend to purchase a rural home for investment you have to consider that depending on the location of your land, the following setbacks are possible:   Low Population = Fewer Public Services Due to the lower number of people moving to rural areas, the variety and quality of public services may not be the same as those in the big cities. Adjusting to the level of public service available within the rural area needs preparation and proper expectation-setting. Limited Economic Opportunities Rural properties should be considered as long-term investments given the smaller economy and market in the area. A rural homeowner usually waits for a long time to sell or lend the property since there's not a lot of business opportunities. Weak Tourism Unlike metropolitan properties, listing a rural home as an Airbnb investment has its disadvantages in terms of average monthly rental due to the low number of rural area visitors. Because of its long distance from urban cities, fewer amenities and services, and the lack of tourist attractions, an investor might find it challenging to purchase a rural property for rental investment alone. In addition, these are the things that should be checked when purchasing rural properties that are not noticeable or applicable to public properties: Water sources for possible cases of drought or bushfire Historical data of livestock and plant diseases Pests and availability of exterminators in the area Land or water chemical contamination which could determine the property value Law requirement in weed or animal control Land usage rights which could limit what you could or could not do with your property Since the vendors may not be required to disclose this information as part of the sale always check with your real estate broker if it is legally possible to have these items reviewed before making a bid on the property. Despite the number of things to check before even considering to view a listed rural property, potential investors remain enthusiastic due to the wide range of options available--from lake houses to farmhouses, and mountain cottages not just the typical countryside ranches. Metropolitan real estate promises higher expected return and demand, but rural properties entice a significant number of investors that are looking to pay fewer taxes, spend less cash, and purchase more properties. Given the list of risks in buying rural property, what are the advantages of investing outside of the city? After careful assessment of the presented risks, let's discuss the benefits of buying a rural property. Fewer Restrictions Compared to property development restrictions in big cities, restrictions on rural properties tend to be less than those in urban areas. This gives rural property owners more options in terms of extending their land for development. It also gives them the freedom to list their properties without having to deal with strict house listing regulations compared to big cities like New York or Los Angeles. Land Development Rural areas allow investors to purchase multiple properties and give them more opportunities to expand. Strategically, buying a rural property as a long-term plan could increase land value. It would also be profitable to sell should the investor decide not to pursue the land. Significantly Cheaper Prices A rural property investor would pay an average price of almost half the cost of the same size of an urban property--making it possible to purchase multiple properties at once that would fit an allocated budget. The next item heavily influences low prices on this list which is the lack of competition that causes prices to go low. More Supply and Less Demand The number of rural properties has been increasing, but the lack of demand from investors causes minimal competition in the market. It's best to check for a feature that has a good access road so you could have the rural life without having to worry about driving back to the city every once in a while. Rural homes present opportunities that can't be found in urban cities, but it is essential to avoid common pitfalls--like failing to do your homework about the listed property before making a bid, and other forms of due diligence that may potentially derail your first rural property investment. Know the risks, check all potential setbacks, review your numbers, and set your expectations should you choose to live in the rural areas with your newly purchased property.

  If you're the adventurous type who's always itching to get on a holiday weekend on your favorite beach, or you want to experience living in the countryside more often, chances are you have been thinking how nice it would be to have your own vacation home. And although owning a vacation home is a decision that shouldn't be taken too lightly, it can also be profitable (and enjoyable) in the logistical and financial sense. In the 2017 NAR Investment and Vacation Home Buyer’s Survey, more than 80 percent of vacation buyers reported that now is a good time to purchase real estate. For some people, it is a matter of money and responsibility, and the process could be too intimidating. But for some, it might be a matter of experience and recreation, especially for those who are looking to have a retirement place in the future. Here are our investment tips to help you with your decision:   Determine your intentions for the home Ask yourself what you plan to do with the house. Aside from enjoying it over the holidays, would you like to rent it out during the off-peak season? You need to consider how you want to use and own your property for financing and tax issues. It's your choice if you want it to be your primary residence, your second home, or even have it as an investment property. According to NAR*, at least 42 percent of vacation home buyers plan to use their property for vacations or as a family retreat, while 18 percent plan to convert their vacation home into their primary residence in the future for retirement. Meanwhile, 37 percent of investment property buyers purchased the home to generate income through renting the property. You can rent the home and even use it when it's not rented. Tax treatment is less beneficial if you'll use it as an investment, but the extra rental income can help you with the costs.   Greatly consider your vacation home's location Even if you're lucky enough to have found your "magical place," you still need to take into consideration all the pros and cons in the area. It is best to visit the community many times over — both peak season and offseason — and check out other important factors such as the condition of roads in any time of the year, neighborhood safety, access to nearby shops and public transportation, and others. Spend more than a few weekends there and talk to the locals about any day-to-day hassles they may be encountering.   Calculate all the costs The purchase price of your vacation home isn't the only thing that needs to be taken care of. You need to factor in all extra costs for running the house — from taxes, insurance, property maintenance, HOA fees, utilities, and all other costs associated with homeownership. You might also want to consider the travel costs to your vacation home. It is also advisable to plan for personal budget items that lenders don’t use in their qualifying calculations, such as furniture and housewares. You’ll also need a budget for special equipment needed for properties near the beach or resort.   Work with a real estate agent who knows the area Your chosen country town may look great; picturesque even. But you might want to consider the state of roads leading into the area during winter. You will also need advice on local zoning and property rental rules. A local real estate agent who knows the area by heart can help you clarify any issues associated with buying in your chosen location. The agent can also help you envision your dream vacation home in any season, and is a great resource for any information related to the community.   Know the area's proximity and have a plan for emergencies They say the best vacation homes are easy to get to and have alternate routes to avoid traffic. It is also smart to choose a house that is within driving distance from your primary residence so you'll be able to check on it more often for any necessary repairs and maintenance issues. *2017 NAR Investment and Vacation Home Buyer’s Survey