Have you ever wanted to move to the country or a smaller community? Although the value of your current home has likely softened – there are more opportunities to purchase in a rural area or smaller town as these homes have also become more affordable (and still have the same prestige).
Why a Rural Property Now?
If you’re looking for extra space or privacy now’s a good time to look at rural home purchases. Why? Less people are purchasing them. One reason is that many employers are now asking their employees to come to the office more regularly. You will also find that older people who own rural properties are selling because they want to “cash in” or maybe move closer to family who live in an urban centre. As supply increases, your chances of getting a home in a smaller town or a rural area grow.
Benefits of a Rural Property
There are many benefits of owning a rural property compared to one in an urban centre. Some of the benefits include:
- Having more space to run a business out of the home and therefore forego renting an additional space for your business
- Having a more sizeable back and front yard for personal enjoyment or hosting gatherings
- The ability to take up any hobby farming that you wish
- More personal space without neighbours located closely
So if you’re just looking for more space as you’re running a business from your home or need extra space for equipment, purchasing a rural home also gives you more space to do the things you love. While there are many benefits to a rural property, there are many nuances as well when it comes to financing these properties.
Financial Impact of Purchasing a Rural Property
Some of the surprises you’ll find when financing a rural or country home include:
- Few contacts with mortgage brokers who know the area and can advise on the appraisal of the home
- Acreage around owning a rural property and how it impacts the home valuation
- Well and septic systems that some banks or financial institutions won’t mortgage
- Changes in mortgage qualification that could impact your ability to get approved for the mortgage you want based on increased down payment requirements for rural properties
The First Step to Owning a Rural Property
What’s the best way to move forward with real estate and mortgages, as rates rise and the market changes? Remember, there’s not one single best solution for everyone.
If you’re curious about your own financial situation, to see if you can own the rural property you want to, we’re happy to give you scenarios based on your goals. Although the decision is not ours to make – we’ve helped 1000’s of people make good financial decisions with real estate and mortgages and we’re happy to share our expert advice.