Commercial vs Residential real estate investing
When most people think about real estate they think about buying spaces and renting them out. But there are two types of real estate that are available for people to invest in. There is commercial real estate which is property used for working and business. Then there is residential real estate which focuses on living spaces such as homes. Each type has different strengths, weaknesses, and mis-conceptions that we are going to review to help you make better informed choices of what kind of investing may interest you.
The first thing to keep in mind is that if you don’t want to literally buy property and manage it there are many Real Estate Investment Trusts (REITS) on the stock market that focus on different types of real estate. Investing in these can give you exposure to the desired sector of real estate and without having to manage property. Other factors to keep in mind that apply to both commercial and residential real estate are expenses that you will have to pay such as property tax and different forms of insurance.
On a more general level residential real estate is easier for most people to get into as it is cheaper and less complex than commercial real estate. Typically commercial real estate is used more high wealth individuals. The biggest difference is that commercial real estate can be much more high cost than residential…
