According to real estate market experts, investing in both residential and commercial properties has its own advantages and disadvantages. But, some things should be taken special care before investing.
Residential Vs Commercial Property: Investment in property has increased rapidly in the last few years because the returns obtained in it have been very attractive. There are still many excellent investment opportunities in real estate. But, there is a question in every person’s mind that which property is better to invest in, residential or commercial, so that one can get good amount on rent or resale in the coming years.
According to real estate market experts, investing in both types of properties has its own advantages and disadvantages. Therefore, one should proceed with investment only after keeping in mind the advantages and disadvantages of both types of properties. Let us tell you how?
What market experts say:
The decision to invest in commercial and residential property depends on the investment strategy and other factors. Pradeep Mishra, Founder, Homents, a real estate research and consulting firm, said that the returns and rents received in both commercial and residential properties are subject to location, that is, depending on the location of your property, you will get the rent and resale value. There will be income on selling.
Rental Yield
Pradeep Mishra said that before investing in residential property, you should check the rental yield of the city where you are buying a house or flat. Because, rental income is different in every city. For example, the rental yield in Gurgaon is 2 percent, whereas in Bengaluru it is 4 percent, that is, if you buy a property worth Rs 1 crore in Gurgaon, you will be able to earn only Rs 2 lakh from rent every year. Whereas in Bengaluru this earning will be Rs 4 lakh.
At the same time, even in commercial property, rental income strongly depends on the location. If your property or shop is in a good location then you will get good rent for it. However, being in a remote location can impact both rental income and resale returns. Since the rents in commercial property are good, one has to invest more but investing money in the wrong place can prove to be very harmful.
Good research on location and rate:
Be it residential or commercial, one should do good research on the price and other aspects before investing in any property. First of all, try to assess what the future possibilities will be at the location where you are buying property, whether a house or a shop. If there are schools, colleges, hospitals and offices of big companies around your property, then the demand for this house and shop will be high here. If the offices are not nearby, then how good the public transport facility is from there also matters.
Construction quality of the property:
If you want better returns from property in future, especially residential property, then before buying it, definitely consider the reputation of the builder and the quality of the project. Because, with the passage of time, if any problem arises in the construction of the house or flat, then the value of the property gets affected. Apart from this, maintenance costs also increase due to poor construction.
