Investing in real estate has always been a handsome option. However, one must ponder over the choices in hand before proceeding further. Commercial and residential real estate are two different options one must keep in mind while choosing to buy property as a part of the investment.
Both the options may get you handsome return if you are equipped with right kind of planning. Most of the people identify themselves more with residential properties rather than commercial ones but the latter can be a powerful investment tool as well.
The primary reason why most people consider investing in residential properties is familiarity. Most of us much acquainted with the idea of renting of leasing a residential property while commercial properties may expose you to unfamiliar territories.
On the legal point of view, the owner of a commercial property is much more secure than the one with a residential one. It is often very difficult to force a tenant to leave the property. There have been many examples when they manage to stay without giving rent for years.
One more positive aspect of buying a residential property is its low vacancy risk. Once you decide to sell your property, you will always find a horde of people waiting to buy from you. However, a commercial property is more difficult to sell out as mostly a commercial property is sold out when the business has dried out.