Residential Property or Commercial Property: The Better Investment

For every buyer and seller in the real estate market, there’s a reason behind why they choose to buy or sell a property. But for the most part, it’s all about making an investment or getting a return for their investment.

If you’re someone who’s looking to invest in real estate, you will have to decide between buying a residential property or commercial property.  Each one has its pros and cons. Take a look at each of them to make a smart investment decision later on.

Commercial

Commercial property is comprised of buildings and lands. Basically, you invest in this type of property to

earn profits. Commercial real estate is also called income property because you lease them out and earn from that. Retail space, offices, rental residences are just some of the income properties you can invest in.

When you invest in a commercial property, your ultimate goal is to generate profits from your tenant’s leases. There is also a risk involved here. You will have a higher start-up cost for commercial real estate. They are pricier and maintenance is more expensive too. Commercial real estate loans are harder to get too.

But the tradeoff is that if you do succeed, you can earn a lot from your income property. Just make sure to manage and maintain it properly. Further, you must also do your share in giving your tenants what they want.

Residential

Residential property is comprised of single-family homes and rental residences with 1-4 family homes. Condominiums are also categorized as residential real estate. The main reason why investors buy residential real estate is they want to become a landlord or they want to flip houses and generate a profit. House flipping is a term used when an investor buys a house at a low cost, fixes the houses (flipping) and then selling it for a higher price.

The main advantage of investing in residential property is the low start-up cost, specifically if you’re flipping houses. Now if you want to be a landlord, you can earn good money from your tenants too. The only disadvantage is the risk you will take if you don’t get to sell a flipped home quickly. Also, you will have to deal with tenant issues, which can be very stressful.

What are you leaning towards, residential property or commercial property? Pick the type of real estate that will suit your experience and selling skills more. This way, you will feel more confident with your investment.

Tam-Bay Realty LLC
1408 N Westshore Blvd, Suite 1000,

Tampa, Florida 33607
(813) 908-0706

http://www.tam-bayrealty.com/contact-us/

http://www.businesslocallistings.com