There are pros and cons to both properties that you have to weigh accordingly.
Even though it depends on the size and location, if the rents of nearby residential and commercial properties are compared, generally commercial properties will win.
If you intend to profit from real estate investing, you will undoubtedly struggle with the decision of whether to invest in a residential property such as a home or apartment, or a commercial property such as a shop or warehouse. There are pros and cons to both properties that you have to weigh accordingly. There are certain factors you should keep in mind while choosing to invest in property, we can help you with this dilemma.
Rent
In general, the rent of a commercial property is higher than that of a residential property. Even though it depends on the size and location, if the rents of nearby residential and commercial properties are compared, usually commercial properties will win. The problem is that when the local market is depressed, commercial property rates and rents will come down, but residential property rents will remain unaffected.
maintenance
The rent for a commercial property may be higher than a residential property, but the landlord is not responsible for the maintenance of the residential property. On the other hand, in commercial property, these expenses also have to be borne by the owner of the property. This can become a burden like an additional expense.
Place
If the commercial property is in a desirable area, you will have no problem renting retail space there. If the home is off the market or in a location that is undesirable for buyers, it will be challenging for you to find a tenant. Residential real estate is also a leader in this matter. Moreover, buying a commercial property is a herculean task in itself. In general, the risk increases with the rent of a commercial property. Before investing, you should determine the level of risk you are willing to accept.
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