When it comes to investing in real estate, one of the first and biggest questions that people tend to have is how they are going to finance this endeavor. However, after the dollars and cents get all worked out, it is time to figure out where they are going to be putting that money.

There is some dispute among real estate investors on whether or not they should invest in real estate in smaller towns or in big cities. So, what is the right answer? Well, it may be more complicated than you think.

We are going to take a look at the difference between buying in big cities or small towns, so you can make the most of your real estate investment.

There are many people who think about investing in real estate in bigger cities, and ultimately this is usually the best answer, and for a simple reason. There is more opportunity for growth in larger markets. You want to invest in a property that has a high growth potential. You can’t invest a small amount and fix and flip a property for big gains in an area that doesn’t have a big growth potential.

However, that doesn’t mean that there aren’t smaller towns that have big growth potential. Smaller towns that are located in close proximity to large cities or those that have seen bigger businesses open locations within this community. Many times, large companies will open warehouses or factories in small towns—and if you can get in before these bigger businesses make their way to small towns, you can end up making a smart investment that will really pay off.

Another thing to keep in mind is that while big-city growth can be great for real estate investing—investing in big cities with big growth potential also means big competition. You are going to have to compete for affordable properties in up-and-coming neighborhoods, you may have to out-bid other investors and work to get the property, and you are likely going to pay more for contractors work as well.

So, while in most situations, you are better off investing in big cities, there are caveats to both big city and small-town investing. You need to be able to run the numbers, be patient and find the right property in the right location for you.

Now that you have a little more insight on the difference between investing in properties in big cities or small towns—you have the information that you need in order to make the best investment possible for you and your future.