COMMERCIAL VS RESIDENTIAL
WHERE SHOULD YOU INVESTMENT COMMERCIAL VS RESIDENTIAL PROPERTY ?
RENTAL
RETURN
|
2-4%
|
6-12%
|
RISKS
|
LESSER
VACANCY RISK
|
HIGHER
VACANCY RISK
|
MAINTENANCE
&
MANAGEMENT
|
EASIER TO
MANAGE THE TENANT & PROPERTY
|
MORE
COMPLEX TO MANAGE {TENANT, MAINTENANCE ETC.}
|
LEASE
PERIOD
|
SHORT-TERM
{11 MONTH}
|
LONG-TERM
{5-15 YEARS}
|
SECURITY
DEPOSIT
|
USUALLY 3
MONTH RENT
|
USUALLY 3
MONTH & 1 YEAR RENT
|
INVESTMENT
AMOUNT
|
LOWER
|
HIGHER
|
TYPES
|
APARTMENT,VILLA,BUILDER
FLOOR
|
RETAIL,OFFICE,HOSPITALITY
|
TAX
BENEFITS
|
YES
|
NO
|
LOAN
|
EASILY
AVAILABLE @ LOWEST INTEREST RATES.
|
EASIER
AVAILABILITY FOR RENTED OUT UNITS HIGHER INTEREST RATE.
|
LIQUDITY
|
EASIER TO
SELL RESIDENTIAL
|
MORE
DIFFICULT TO SELL COMMERCIAL
|
ECONOMY
IMPACT
|
LOWER
|
HIGHER
IMPACT
|
KEY
FACTORS
|
PROXIMITY
TO MARKETS, SCHOOLS, HOSPITAL, CONNECTIVITY.
|
PROXIMITY
TO AIRPORT, METRO, WIDER ROADS, BUSINESS DISTRICTS.
|
GOOD
FOR
|
FIRST TIME
BUYERS
|
EXPERIENCED
INVESTORS
|
