When it comes to buying property, there are many things to consider. You may be wondering whether you should invest in a residential or commercial property. Both have their own unique benefits and drawbacks, so it can be difficult to decide which is right for you. In this blog post, we will discuss the pros and cons of both residential and commercial property investment, so that you can make an informed decision about which type of property is right for you!
What Is Residential Property?
A residential property is a piece of real estate that is used for living purposes only. This can include anything from a single-family home to an apartment complex. The main difference between a residential and commercial property is that a commercial property can be used for business purposes as well, while a residential property cannot. Residential properties are typically taxed at a lower rate than commercial properties, as they are considered to be less valuable to the community.
There are many different types of residential properties, each with their own unique features and benefits. Single-family homes are the most common type of residential property, and they come in all shapes and sizes. These homes can be found in nearly every city and town across India. Multi-family homes, such as duplexes and apartments, are also quite common. These properties are usually more affordable than single-family homes, and they offer the benefit of having multiple units under one roof.
What Is Commercial Property?
A commercial property is a type of real estate that is used for business purposes. This can include office buildings, retail stores, warehouses, and manufacturing plants. Commercial properties are usually zoned by the government to allow for this type of development.
The term "commercial property" can also refer to the businesses that occupy these buildings. These businesses can be anything from small mom-and-pop shops to large corporations. When people talk about investing in commercial property, they are usually referring to the purchase or lease of these types of buildings.
There are many types of commercial properties , and each has its own set of benefits and drawbacks.
For example, office buildings tend to be expensive to purchase or lease, but they can provide a steady stream of income. Retail stores, on the other hand, are often less expensive but may not generate as much income.
Difference Between Residential & Commercial Properties
There are a few key factors that distinguish residential from commercial properties. Firstly, commercial properties are generally zoned for business use, while residential properties are not. This means that if you want to open a business from your home, you would need to get a zoning variance first. Secondly, commercial properties tend to be larger than residential ones. This is because businesses need more space to operate than households do. Finally, commercial properties typically have different amenities than residential ones.
For example, most businesses need some sort of parking lot or garage, while most homes do not. These are just a few of the key differences between residential and commercial properties. Keep them in mind when you're looking for a new place to live or work!
What is a commercial real estate property?Buildings for retailBuildings for office space.Warehouses.Buildings for Industrial purposesBuildings for apartmentsBuildings that have retail shops, office space, etc.Investment in commercial Estate increases your income, compared to renting to a single-family, which yields a profit of around 2-4%, commercial estate gives you a profit of around 6-12% on the price it was purchased.
Commercial real estate has specific hours when the shops are open, you won’t have to worry about any hassle at night, unlike renting for housing where you can be called for maintenance anytime.The retail tenants manage their space by themselves as they need to catch the customer’s eye, you can save yourself putting extra efforts into that.You can have more business to business customer relationships with the tenant which will help in keeping the conversation professional.Retail tenants have to maintain their image for their customers, for which they take care of the property which is in the common interest of both the tenant and the landlord, hence the quality and value of the property increases with time.If your commercial real estate property is in a very premium location, megabrands would be interested in your property, and because they have to maintain a very good reputation amongst their customers, your property’s condition will improve along with its value.
Shops like Adidas store or Starbucks would further increase the value of your property.You don’t have to pay any expenses on the property, it is the job of the lessee to pay the taxes and expenses.
You only need to pay the Mortgage.To have access to the best Investment property commercial Real Estate services, visit Infinity commercial group.
