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Blog: Should I invest in residential or commercial property?


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Here is a set of research I conducted recently about investing into residential or commercial real-estate. There are companies that work with us to help us decide and the minimal investment is anywhere from $50,000 and up.  Without boring too much, I can tell you these:

a. Investing into residential is less risky however, returns can be less sustaining - if you buy a residential multiple family home (aka Condimoniums or town-homes) or a single family home, the risk of depreciation is less however, the returns of obtaining reasonable returns (10%) does not sustain year-after-year.

b. Investing into commercial is risky however, if things work out fine, returns can be good. If you do get a long-term client and a strong legal advisor,  commercial investment can work good. In addition to the commercial properties, one can also invest into laundromats or similar small businesses where you own the real-estate and lease the slot-machines, it can generate sustaining revenue. However, the key issue for this is 'location-location-location'.

I am currently leaning more towards commercial property - let me know if somebody has better options.

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Author: kentucky
Location: United States,Texas,Pharr
Home Category: Traditional home
Age of the home: 5-10 years
Distance from me: Unknown

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