May 20, 2021
Investors have long since looked for the perfect properties to invest in – and lately, the suburbs seem to be a very convenient choice overall. These types of properties are more likely to attract long-term tenants while being conveniently priced and attractive.
If you are not certain whether you should make this new investment or not, here are a few reasons why suburban homes are the new it-thing in terms of making a long-term profit.
1. The Homes Will Have Less Wear and Tear
When people are moving to the city, the chances are that they are looking for temporary accommodation. They will sign the lease for about a year, knowing that soon enough they will probably want to move onto a new property. As a result, they probably won’t care too much about the property or anything getting damaged in the long run.
However, people in the suburbs often have different mentalities. Usually, they go there with a desire to settle. This is why they normally sign a lease that goes past one year. These people will see the place as a home, and they will be less likely to cause wear and tear – and as a result, will put you through fewer repair processes.
2. There’s Less Turnover
One of the perks about investing in a home in the suburbs is the fact that there isn’t as much turnover. As mentioned before, people see the suburbs as a permanent place for them to settle – a better alternative to the city.
Renters going for the suburbs are looking for stability, so there’s a smaller chance of them packing their bags and leaving you to find other tenants. Plus, with more and more millennials renting their homes instead of buying, you can expect the investment to pay off in the long term.
People going to the suburbs want to stay there for a longer time – typically for more than one year. For instance, a new family may decide to move to the suburbs not just because the prices are more convenient, but because they also want their kids to go to the schools in that neighbourhood as they grow up.
3. You Get More Room for the Money
In the city, the square foot price is often higher as compared to the price in the suburbs. This is why a one-room apartment in the city centre can have the same price as a two-bedroom apartment in the suburbs. Many people will likely prefer the larger property for the same price, which is why you will have many tenants coming your way.
4. They Often Have Plenty of Outdoor Space
The chances of finding a property in the city with outdoor space are very slim. You’ll probably find an apartment cramped somewhere, and if you are lucky enough, you will also have a park nearby where you can go on a jog. However, things are quite different in the suburbs.
One of the biggest perks is that since people are not cramping themselves to get there, the suburbs tend to have quite a lot of outdoor space. You’ll very rarely find apartments or skyscrapers, as people in the suburbs often like to have their own homes and back gardens. This will draw a lot of people to your property, and there’s a good chance you’ll never lack tenants.
5. There’s a Lower Crime Rate
We know what you’re thinking: since it’s the suburbs, there should be a higher crime rate there, shouldn’t it? Well, it’s the exact opposite. The suburbs often have the lowest crime rate, all because criminals are going to places where they can “hide in plain sight” and target a higher number of people.
This is why the suburbs tend to be safer, and why this kind of property will attract not only you but your tenants as well. In the suburbs, everyone knows everyone – so, there are fewer chances for someone to become a thief there and get away with it.
6. The Suburbs Are Often Quieter
If you’ve ever lived in a big city, you probably noticed how loud the area can be day and night. In the city, there are many people, many cars, many nightclubs – many things that keep the urban area alive, but with the noise bustling. With that in mind, while you do get many opportunities for things to do in your area, you can’t really leave your window open without going crazy from the noise.
With that in mind, things are a bit different when you go into the suburbs. There are fewer people there as compared to the city, and subsequently, fewer cars. Plus, since they’ll be hitting the city to enjoy the nightlife, evenings often tend to be very quiet. So, you’ll be able to hear the crickets at night and perhaps even your neighbour slamming their car door every morning.
7. You Still Get City Access
One of the best parts of the suburbs is that while it’s not in the heart of the big city, it’s still connected to it. Usually, it takes less than an hour to get to the centre, and you may either get there by car, railway line, bus or even cab (depending on how much in a hurry you are). Sure, you probably won’t be getting buses every 10 minutes on different routes like you do in the big city, but you’ll still get regular public transportation every day.
This is why many people prefer going to the suburbs rather than living in the big city. Of course, someone that enjoys going out every night might prefer a home in the city, but someone who only occasionally goes out on the weekend might want to save that money and rent out a suburban house.
The Bottom Line
Taking out a second mortgage and investing in a suburban property can bring several benefits. Many tenants that are looking for long-term homes are often going for the suburbs, so you may expect less turnover and less damage to your property. Visit this page to find out more about second mortgages and make your first investment in a suburban property.