Difference between Commercial and Residential Real Estate Investment

Real estate investments are broadly segregated in to commercial and residential investments. One can invest in any one of them or try investing both, but should figure out the relevant points and identify which suits best to their needs.

At the prima facie one should know the use of the property purchased. In residential property one has to deal with people, tenants if used for renting out. The commercial property is used for official purposes, like renting the space for opening offices, leasing out building and other commercial intentions.

Investing in commercial and residential property may differ as per the basis of the location. A commercial property may have a different zone where other commercial plots and property have been chalked which might prove tedious, if intended to convert it in to residential space, though it is not tough but might not include peaceful ambiance. The residential property on the contrary involves location which is more peaceful and devoid of commotion and chaos.

In commercial property once the property is rented to the tenants, they are responsible for all maintenance. The tenants have to take care of the complications, as in if any plumbing issues, and then the tenants have to bear the cost and pay for all the bills presented, whereas in case of residential property the tenant can call the landlord or inform him for the indemnifications for bills due.

Another rudimentary differentiation is the leasing time frame. The residential property can be rented for month to month time period or the period of maximally one year and then again the contract papers are renewed. Where as in commercial investment, the property has a clause, in which the property is leased out for longer period of time, specifically like 10 years or 15 years of duration. The banks are keener to lend money for long durations. But the biggest loophole in this process is that the commercial property tenant has to bear the amount of rent even when the business incurs loses. In such says the tenant can’t vacate the premises to shift in some other locations instead has to churn his equipments and other deposits if not enough profits are being enjoyed.

So before making an investment in the commercial and residential property one has to chalk out best of the points and store up enough strategies to tackle the uncertain situations.

Piyush Group, a hallmark of quality, preeminent services, sophisticated technology and highly elevated architecture platform serves its clientless in Bhiwadi. The Piyush Group, property builder spreads its wings to shelter millions across and strives to contour the dreams perfectly, enabling them to fit beautifully in to customer’s need.

Author Bio:-Piyush Group is one of the leading real estate company in india. Piyush Group is involved in development of Integrated Township, Group Housing Projects, Commercial Mall.