Wyoming is a primarily rural area. We have beautiful landscapes. Therefore there is an excellent opportunity to invest in rural real estate.
There are advantages to investing in rural real estate compared to urban counterparts. We thought we could break it down for you to understand the investment benefits.
Less Competition –
- Rural land purchases tend to lean toward a buyer market, so you will have less competition when seeking a purchase.
Easier Networking –
- If you go to sell, it is easier to get in the sphere of influence to help find the right buyer. Rural land typically resides in smaller communities where folks are willing to lend a hand.
- Rural real estate is typically less expensive than urban real estate because the demand is different. The limited competition makes this possible, but it also influences the amount of risk financial institutions are willing to take on as lenders. You may have a higher opportunity to acquire funding support in a rural community than in an urban center.
Lower Property Tax Rates
- Wyoming has low property taxes, which makes the area very attractive for real estate investments compared to other communities in neighboring states.
Less chance of HOAs
- Rural purchases typically don’t reside in areas where there are HOAs supplying land owners with an additional monthly expense. This can be a huge benefit when trying to keep costs low.
Higher Cap Rates
- Less competition means the property prices are lower, and fewer landlords lead to higher cap rates. The smallest and least dense cities have the best price ratios.
- When you purchase rural land strategically, it can become an excellent opportunity to develop it for a profit or sell it to a prospective developer if the overall area interest is high. Developers like to invest in rural too because they can access unique funding vehicles to help fulfill the untapped potential of real estate—programs offered by the USDA, for example.
Rural real estate investments yield significant returns when done logically and are part of your investment plan. We recommend consulting a real estate professional to learn more and encourage you to visit a lender to get prequalified before starting the search.