Country Vs City Renovating for Profit in 2022-2023
Is There a Difference? And Which One is Right for You?
Are you looking to make money from renovating a property? You don’t have to be a seasoned renovator to spruce up a space but knowing how to find the perfect place takes careful planning. Renovating for profit can be done and is achievable.
Should you invest in a property in a big bustling city or the quiet countryside? Both have their advantages and disadvantages. This post can help you decide if renovating for profit in the country or city is right for you.
Competing With Seasoned Renovators –
Renovate for profit -What You Need to Know
Before we dive into the bulk of the post, let’s talk about what it’s like to compete against the “big players.” I’ve been in this business for a long time, and I know what it feels like to be up against people with much more experience flipping homes.
Do you feel intimidated? I’ll let you in on a little secret – me too! Even though I’ve been doing this for years, I still get nervous when I meet someone with more experience. One way I overcome these feelings is to ensure my renovations stand out by adding WOW Factor.
There’s also a huge misconception that country renovations are a waste of time. Because, in reality, many people have made tremendous gains renovating for profit in rural areas.
If you’re a fan of home renovation shows (same here), you’ll notice they usually focus on more big city homes and not enough on country living. Although this year the Block is certainly having fun and challenges renovating in the country.
It makes you feel like there’s no hope for you if your home isn’t in the middle of an urban area, but this isn’t true at all! If you live in a rural setting, you can still make money from renovating houses and properties, just like those who live in cities do.
Living in the country brings more space, peace, and tranquility, while city living boasts convenience and accessibility. So, what area should you choose to add value, appeal to a particular buyer, and generate a healthy profit margin? Let’s explore the pros and cons to help you decide.
Country Vs. City Renovating for Profit –
Is There a Difference?
The simple answer is YES. When flipping a home, consider the property type and location.
Renovating a property is exciting – no matter where it is!
That said, here’s a look at the pros and cons to help you make the best decision for your next project.
Pros & Cons of Country Renovating
Pros:
- Properties in more rural areas are usually more affordable.
- There’s a larger sense of community in the country.
- Homes tend to be larger and more spacious.
Cons:
- Organizing supplies and materials can be harder.
- There are limited selections in rural areas.
- Longer wait times for tradespeople like electricians and plumbers.
- Renovations are less modern-looking and more country-looking.
Pros & Cons of City Renovating
Pros:
- It’s easier to get materials for renovating in a city.
- There are endless options.
- Trade prices are competitive.
- More people gravitate to the city for schools, work, shopping, and public transport.
- Renovations are more on trend, sleek and modern.
Cons:
- Urban areas can be noisy and crowded.
- There may be logistical limitations.
- You may experience noise complaints from neighbours.
What’s the Difference Between Country and City Renovating in Terms of Profit Potential?
When it comes to your bottom dollar, city renovations tend to be more profitable. Here’s why. Crowded, densely packed cities will always have higher real estate competition and capital gains. Simply put, more people want to live in the city. As a result, you’ll find that many renovators tend to focus on city areas due to the higher return than rural areas.
That’s not to say there isn’t any potential for profit in rural areas. Your ROI ultimately depends on your target buyer’s expectations. People who live in the country arguably get more for their proverbial dollar. On the other hand, if you’re just starting out in real estate, prices are lower in more remote areas, so it can be a great introduction to the industry.
Which one is Better for You-Country or City Renovation?
The 2022-2023 real estate market is shifting. With so many people still working remotely post-pandemic, the demand to live in the city for work is diminishing.
The wide open spaces, privacy, and natural beauty are more needed than ever. But flipping houses in the country is a risky business and not one that always pays off quickly! It can be slower to make your profits if real estate markets are slow. There’s also less room for error as it may cost big bucks when going over budget or taking too long with projects.
Consider investing in a rural property if you have the time and energy to dedicate to your project. If you don’t live in the area, you will spend a lot of time driving back and forth to work on the house
Tip: I currently live in the country, and it’s a very long drive to an urban area.
While people are moving to more rustic or country style homes, there will always be a demand for real estate in the city. Rural areas can’t compete with the comfort of the city. Also, house prices are currently okay even if interest rates are rising.
Consider flipping a home in the city if you want to make a quick buck. City renovations offer an excellent opportunity to make money quickly and efficiently with relatively little risk. In addition, selling (or renting) property in the city will always be easier because there are simply more people. That said, the competition is fierce.
Final Thoughts.
Like any investment, some risks come with the “renovate and flip” plan. The biggest threat is that you cannot sell the property for a profit or the profit margin you seek. Selecting the best location can help you execute a successful renovation.
I have renovated homes for profit in open, rural areas and jam-packed cities. In my experience, you can make money renovating in both places as long as you have a plan. If you’re someone who wants to make a quick buck, I’d recommend sticking to the city. On the other hand, if you’re not in a rush, a more laid-back country remodel will probably be less stressful.