Thursday 15 May 2014

Which one will be the best either to invest in Commercial Real Estate or in Residential Real Esate

It is a nice topic to talk about in a today's market state of the Land Property or the Apartment Property. The basic principle of investment on the both commercial real estate and residential real estate is the same. Few parameters make both the investment are good and they are cash flow, rentals,tenants,value of the property, lease, financing, knowledge and significance of the investor.

The Residential investment in which the rental payment will be less than the commercial rental payment as there is a payment of current, maintenance etc which leads to the great earning in the Commercial Real Estate. In Residential the cash flow will be consistent since one tenant goes then another
tenant will occupy the space. House rentals depends on the current market strategy so the rents also increases day by day.

It is easy to sell houses compare to the large commercial building due to security and customs. Its is easy to purchase the residential land in a single down payment and get the 90 percent mortgage financing from the bank. The residential area require less space so can build many houses and earn money. Commercials can give to lease so the duration will be higher can get the large turnover out of it. The value of the property will increases year by year because of document periods given for the leases. With all this advantages sometimes there is a chances of disadvantages in Residential the tenants sometimes will not pay the monthly rents and sometimes they vacate the house without paying the rent.

In commercial, if the person is using for the business purpose and its running fine then he can earn the profit otherwise he loose everything if the business get loses. Both residential and commercial owners have good and bad experience simultaneously. Overall both Residential Real Estate  and Commercial Real Estate have advantages and disadvantages as common so we need to think wisely before we construct the types of real estate. Sattva Group is a Real Estate Company provides solutions for both Commercial and Residential Projects. According to morals we can start from small to large so we can start a residential real estate before the commercial real estate.

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