Real Estate Investment: Commercial Or Residential, WhichOne Is Better?

Real estate investment does seem like a bright option when it comes to having a stable returns

system. We can find traces of real estate investing even in historic times, hence this art of

investing is one of the oldest ways to make money, all you need to do is be ready with a good

amount of initial investment. There are many reasons why real estate is one of the safest ways

of alternative funding, some of the prominent ones include:

● It is one of the few investment types that are free of any market implications. The only

way in which your returns get affected is through your management and maintenance of

the property you have invested in.

● You can also easily increase your property’s market value by renovating it or making it

more luxurious by adding various things to it like a swimming pool, gym, etc.

● No matter in which type of real estate you invest in, the stock market’s ups and downs

will never affect it.

Types of Real Estate

Real estate is broadly classified into two types and understanding both of them is extremely

important as it guides you in making the right decision when it comes to investing in a physical

property.

● Residential

These real estate properties are made exclusively for people to live in. The property has

many 2 to 3 rooms apartments that can be either rented out or sold directly. These types

of real estate properties serve as the perfect things to invest in if you are looking for a

stable retirement plan. Residential real estate investment’s returns depend on the type o

property you have bought and what your initial cost input is. If the property is big then the

returns will be big and vice versa. Hence, the size and the luxuries that your property

offer, are directly proportional to the number of returns you will be getting. So while

putting your money in residential real estate, keep the above formula in mind.

Commercial

These properties are rented out by companies or brands, to open up their showrooms or

office spaces. The architecture of such buildings is much different from that of residential

areas as the rooms are more spacious, filled with windows, and have beautiful interiors.

Most of these properties are owner-occupied or leased. Buying such properties requires

you to make a higher amount of initial investment, but the returns will surely be able to

cover that expenditure. Most of the maintenance work is taken care of by the companies

or brands you will lease the property to, hence you don’t need to worry that much about

maintenance work.

For deciding in which type of real estate property you should be investing in, it should be totally

dependent upon your suitability, comfort, and budget. If you have a low budget then you can go

for residential property and then can, later on, invest in it to add on more buildings around it. List

out your return requirements and the current budget for investment, then only you will be able to

invest both, profitably and wisely.