If you are planning to invest in property to earn returns, then which type of property should you choose – one option is Rental income from your own house or income which generates from the commercial property.
Generally people do not identify the difference between residential and commercial properties. While making an investment they just focus on one type, both have different concepts for buying and selling. If we compare both properties then the expenses bearable limit for residential property is less than the commercial property because the tenant only requires the basic infrastructure that looks neat.
But in case if we look on the commercial property that is offices and malls than it will indulge the maximum investment and also comes with the leasing and vacancy risks.
In commercial property there is a direct impact of the economy and real estate market on this segment.
Let’s have a quick view on the Residential versus commercial realty
- Commercial properties as compared to residential properties are usually costlier unless and until you are investing in individual shops.
- For repairs and maintenance, the tenant is generally responsible for it in commercial properties, while it is entirely the responsibility of the landlord.
As you have read that commercial properties are more beneficial than residential properties but somehow that does not fit in the correct frame. The rental value of a residential property does not go down if the market is slow, that do not happens with commercial property.
Residential properties are less complicated and easier to understand for a new investor. One can easily analyze its value by comparing it which in as a result not so possible in case of commercial property. Residential property is a lifelong asset that can be passed on to the next generation.