Commercial & Residential real estate comes with their own benefits, it is very difficult to make a choice among them. Each investment has its own pros and cons that make life easy as per every individual’s requirements. The decision is totally based on the investor who is willing to put their hard-earned money on a particular asset.
In this blog, we will try to understand the benefits of both types of property so that it will be in your hand to make a choice from the given options.
- Residential real estate property – A residential real estate property can be of 1 to 4 units that consist of:
- Single-family homes
- Individual mobile homes
Most of the families and people usually either buy such properties or get them on lease. To get the best return from a residential property would mean that you will have to find tenants to live in this property and apartment so that they can pay you the rent every month. While looking for tenants for your residential property, you will have to be mindful enough of the tenant quality, their income, their family type, and other background information just to make sure that they will responsibly pay you your rent every month and will also take care of your apartment. Having tenants for a long period of time in your apartment would help you stress a little less as you won’t have to worry about doing efforts all over again.
- Commercial real estate property – A commercial real estate property consists of 1 or 5 more units that are mainly used for business purposes, which includes.
- Office buildings
- Multifamily buildings
- Manufacturing houses
- Apartment complexes
- Vacant land
Such types of lands and buildings are to be given on lease to gain exponential growth and benefits. Lease agreements are more complicated for commercial platforms.
Looking for tenants in commercial buildings would help you go longer than you expect. A tenant who will get your property on lease will last for more than 10 to 15 years because of their standard and name in the industry. To respect that, they will also maintain your property as much as they can as they would want to reflect their position in the market via your residential property.
Because they are planning to last long at your property, they will make sure to pay all the dues on time without you giving them any reminder.
A bonus point would be that by the time you are already gaining so much from the leased commercial property, you are going to see an increase in the value of your real estate property as well. Commercial property is sure to give you around 8 to 10% of ROI every year. Irrespective of the market fluctuation, a real estate property will always see a hike in its price compared to any other type of investment, especially commercials.
Greenscape Group of developers encourages you to make a wise decision and choose a type of property that suits your requirements!