Big cities around the world are known to brim with job opportunities and cramped office buildings. Much of this limited space in the city is occupied by office buildings but also the occasional cluster of homes, or towering condominiums, which of course, cost an arm and leg due to their strategic location.
As an effect, most millennials choose to live in rented property as they can't afford owning long-term homes in the big city. But is the crowded and cramped city centers your only options? We've outlined 4 reasons why you should consider buying a home in the city outskirts instead and possibly live comfortably with the decision in due time.
1) Cheaper and Bigger Homes
Many of the towns that line the outskirts of big cities are considered to be a little less developed than the metropolis itself.
Factors like connectivity, infrastructure and job opportunities are some of the reasons why homes and property value outside of the big city are considerably cheaper than ones in the city.
Despite being much lower in value, its size is no compromise if pit against homes in the city. The cost to buy a basic apartment in big cities like Damansara and Subang can cost just as much as a semi-detached home in places like Bangi or Kajang for example.
The only problem with this is commuting into big cities. If you do choose to go down this route, you might end up dealing with heavy traffic along major highways or put up with longer train rides to the city. However, if you are in the market for a larger estate with considerably lower value and don't mind the commute, the outskirts may be the way to go.
2) Positive Home Value Projection
While the precise length of time needed for a small town to achieve 'city status' is unknown, development around the area would be a legitimate indicator of where it is headed.
Major government projects like highways and public transportation (eg: MRT) are key factors that impose a positive value on property in its surrounding area. Other factors that aid the hike of property values include shopping malls and exclusive chain restaurants.
All of the above elements, especially infrastructure related projects, are areas of government focus to help bridge the gap between those living in the outskirts and larger cities. That said; value projection of property in these areas will eventually head upwards.
However, there may be a chance that these outskirt towns cease to develop but these factors may be a clear indication in helping you pick a location that sees development and provide just as much comfort as you would receive in the city.
If you do choose to move back into the city for personal reasons but currently live in a promising outskirt home, it would certainly fetch you a handsome return of investment upon sale to support your move.
3) Lower Cost of Living
Just as home prices in the outskirts tend to be lower; so is the cost of living.
Naturally, cost to rent out lots for business purposes reduce and remain considerably low compared to renting in the big city. This difference in cost can significantly impact the cost of living, for better or for worse.
Let's take a mamak haunt for example. One would pay a good 30% less to have a meal in a town considered to be in the outskirts compared to big cities where business overheads like rent are significantly higher.
From a business vantage, this effect is caused by the need to break even and ultimately make profit. Lower rental costs in the outskirts often result in a lower charge for services or sale of goods as businesses are able to pass this benefit on to a customer.
However, this would only concern privately owned businesses like family restaurants. Chain restaurants on the other hand have fixed prices wherever they mushroom but it is important to note that little towns in the outskirts are ubiquitously sustained by local businesses that contribute to the lower cost of living.
4) Less Cramped Living
In everything that we do, some contact with the big cities is bound to take place. Things like work, shopping, fine dining, entertainment and a myriad of other endeavours make big cities the ultimate urban playground.
As an effect, these already heavily dense big cities attract throngs of people from surrounding towns and smaller cities – especially during public holidays and festive seasons. This happens to be a huge contributor to congested traffic in and around the city.
Smaller cities or towns in the outskirts do not have such an immense appeal, and with considerably smaller population density, getting around will never be a problem – even on public holidays.
This of course is a welcome sight if you look forward to spending less time behind the wheel of your car when you need to make a quick run to the grocery store. You'd have a lot less vehicle-cramping to put up with on the road too.
No doubt big cities are the main attraction in this equation as they are equipped with almost everything one could possibly need. And there's no surprise as to why the saying 'live where you work' is accepted everywhere. However, some have life goals to suit renting and living in the city, while others just can't afford to.
It may not be something that will ever cross your mind, but with hampering property sentiment in the country, it's definitely something worth considering if the above points appeal to your financial objectives and lifestyle.
If you happen to be in a limbo between the city and its outskirts, plus the whole home purchase shebang is causing you to be in a daze - use our simple home loan calculator to help ease your worries in search of a place you can call home.