You may be in the fortunate position to invest in property, add to your portfolio and bring in new tenants. But you may be stuck with a dilemma that many have faced in the past. If you’re not sure whether to invest in commercial or residential property, you’ve come to the right place. Both have their pros and cons which need to be considered before you invest, after all, everyone has different needs and wants.
Join us as we identify the difference between commercial and residential properties along with the benefits and drawbacks of adding them to your property portfolio.
Commercial property, simply put – is any property that’s primary use is not as a residence. For example office and retail spaces, warehouses, and even hotels fall under the commercial property umbrella. The latter of which may confuse some as hotels are temporary residencies for some, but their primary purpose is to function as a business.
Typically commercial property owners will run a business out of their space, but those looking to add to their portfolio and make some money will lease out single units or the whole space to other businesses who may need the space. A lot of businesses however prefer to rent a space rather than buy one, this is because they typically prefer to save their capital for investing in their business operations. This is because buying commercial space outright can be an expensive affair and they deem their money placed elsewhere more beneficial.
The reason that commercial property is considered much more expensive to get into is because of the higher return on investment. Commercial tenants tend to sign much longer leases than residential tenants, making it a lucrative income source. This does mean that more safety procedures will need to be followed, make sure you start with the building being safe and built to the appropriate standards. Get a quote today!
Residential properties on the other hand are homes or apartments. Whether they’re single-family houses, townhouses or studios, they all fall into the category of residential property. This also includes renovated or newly built homes, of which if you’re looking to purchase, you should consider obtaining a professional consultants certification for it. If you’re wondering how it works, we can help!
Normally, those who invest in residential properties are doing so in order to live in them. However, people do look to build their property portfolios by purchasing properties and then renting them out to tenants who are looking for a place to live.
Do you have a residential property that needs evaluating before sale? Make the process easier with a Professional Consultants Certificate. If you have any questions, why not consult our FAQ page. If you can’t find the answer you’re after, please do not hesitate to get in touch with us, one of our team will be happy to help you with your query! Once you’ve booked your site visit, why not stay up to date with the latest news.
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