Real estate has always been one of the most popular investment choices for experienced investors. Unlike most other forms of investment, real estate is divided into two simple categories – residential and commercial properties. It is easy to figure out the kind of property you need to invest it with a few simple questions. But before you get to that part, it is important to know exactly what separates residential and commercial properties. This short guide will help you identify that difference and also figure out the right one for you. Let’s get started:

Residential Vs. Commercial Properties

Residential properties involve all kinds of buildings that people would use for living. On the other hand, commercial real estate is used for business purposes. Both of these properties are differently zoned in each city and have different requirements for setting up. Commercial properties can get you far greater returns on your investments, even in short terms. Residential properties on the other hand are going to be easier to manage and setup, especially if you are new to the business.

Let’s take a look at the benefits that each of these offer us and decide which one is more suited for your purposes.

Benefits of Residential Properties

There are several benefits to investing in residential properties. Here are a few of them:

  • Low Capital

You can start investing in residential properties even with low capital. The main reason here is that residential real estate has a lower cost of entry. Any beginner can start investing in residential property first before moving on to commercial.

  • Lower Turnover

Tenants in residential properties often look for longer contracts than commercial ones. This makes things a lot easier since you don’t have to go looking for new tenants year after year. Moreover, tenants that are staying in your property for a long time will begin treating it like home and will take care of it.

  • Easier Laws

The laws that apply to renting out residential properties in Mohali are quite linient which makes it easy to rent out the property without any trouble.

Benefits of Commercial Real Estate

Commercial properties in Mohali may sound like an investment for the experienced, but they also come with their own benefits. These are:

Higher Payouts

If you are able to pick a prime piece of property for your commercial investment, you can be sure of higher payouts from time to time. Businesses always look for such dense locations, and will pay premium prices for renting the property.

Careful Tenants

Finding tenants who will actually maintain your residential property may be hard, but this is not the case with commercial properties. Since all your tenants are legal businesses, you can rest assured about their maintenance.

NNN Lease

This is the major benefit of choosing to invest in commercial properties since NNN leases can be used to make the tenant pay for all major maintenance, insurance, and even utilities.

The benefits of each kind of property can inspire you to choose one over the other. Irrespective of the property you choose, you can always make a safe bet when trusting a real estate company like the VRS Group. Hope this guide helped you make the right decision.

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