Property Investment: Choosing Between City or Countryside Location

Some people prefer the wide open countryside while others find comfort in the conveniences of city living. When it comes to property investment, however, deciding between these two location types needs careful assessment. 

Buying a property in a country or in a city both have advantages and possible disadvantages. Here are the key considerations that can help you in making the right choice: 

Value Appreciation 

Appreciation refers to the increase in the value of a property over time. In the UK, there has been an apparent rise in value among rural properties in recent years. In England and Wales, data has been registering an astounding 14.2% increase each year. 

If this trend continues, investing in these countryside areas would mean a profitable income when you decide to re-sell your property later on. However, it is worth noting that city properties are also gaining in value though not as rapidly. 

Pricing 

In terms of pricing, city properties are definitely much more expensive than those in the country. For instance, houses in London are sold at an average of £ 541,720 making it the priciest location in the country based on the latest UK House Pricing Index by the Land Registry Office. In comparison, the regions with the lowest price points are Yorkshire and the Humber where properties only average £214,036. 

Size of properties 

Another advantage of countryside properties is size. This is understandable since developments are more condensed in city areas. Because big properties are also limited, their prices tend to fluctuate. 

The Ministry of Housing, Communities & Local Government reports that houses in urban locations only have an average floor space of 80m². Rural homes, on the other hand, have an average of 123m².  

Competing with other buyers 

Though prices are higher, the purchase demand is still higher in city areas and the sub-urban districts near them. With more investors looking to buy, the properties stay for a relatively short period in the market. This means you may have limited time to assess and decide. You have to be ready to finalize your purchase with little space for negotiations. 

The areas with the highest demand are those located in Dartford, Redditch, and Test Valley. This is based on a survey from earlier this year. On average, properties in these neighborhoods are put up for sale and get sold in a blurry period of 2 weeks. 

Selection of properties 

If having a wider and more plentiful selection is your main consideration, then you may have better luck prospecting in the city. Despite having a fast-flowing market, it still has the advantage of having more properties available. 

In the countryside, the options are more widespread. If one property does not suit your preferences, then option number two might be another town away. The houses on sale here may also not be published online. Getting a better understanding of the available options may require an actual visit to the areas. It would be wise to partner with a local agent who can pre-list options on your behalf. 

Marketability as a rental business 

If you are intending to use the property as a rental business, then there may be good opportunities for that in both the city and the countryside. 

Long-term rentals are commonly in demand in urban districts. Many people move into cities to study or to seek employment and most of them search for accommodation. Rural properties also have business potential as vacation rentals. However, you need to select regions that attract tourists. 

Check out our previous article, “Short or Long Term? What Rental Business Is Best For Your Property” 

Maintenance supplies and services 

A wise investor always projects long-term. Investing in a property would mean there will need for maintenance works at some point in the future. In this aspect, a city location has the advantage of easier logistics and availability of supplies and contractors.