Commercial versus residential property
Commercial real estate
A property which is used for business purposes is known as commercial property or commercial real estate. Commercial property includes restaurants, hotels, malls, shopping centers, office buildings, industries, etc. Commercial real estate is generally more expensive than the residential real estate due to the business activities.
Most people buy commercial real estate for running a business or to generate rent revenue. Advantage of commercial real estate is that its occupancy rate is high as there is always strong demand to have commercial space. Commercial property which is located in central business district always sells like hot cake due to high demand.
Investing in commercial real estate is very profitable but one must know that commercial property is expensive and needs much more capital than residential property. Investment in commercial property is for two purposes; running a business or buy to let. The most important thing while investing in commercial real estate is to make sure your select good location. Another factor is the parking space as many commercial areas have severe parking problems which results in loss of clients.
Residential real estate
A property which is used for living purpose or as dwelling is known as residential property. Residential property includes farmhouses, independent houses, villas, apartments, flats and condos. Residential real estate property is normally more expensive than agricultural property but less expensive than commercial property.
Residential properties are purchased for living purpose or for buy to let. In urban areas there is always strong demand for residential properties. Residential real estate which is located near to central business districts or important road link sells like hot cake due to high demand.
Investment in residential property is relatively easy task as compared to commercial property due to low price. Residential real estate has lot of options and investing in much easier. We just need to make sure that residential property is situated in good location as it will always has high demand. Buy to let market is always high due to rising property prices and can generate good rental income. Another important thing to consider before investing in residential property is its size. Always select 2-3 bedroom property as it has high demand.