{"id":6093293,"date":"2023-03-31T10:20:10","date_gmt":"2023-03-31T10:20:10","guid":{"rendered":"https:\/\/www.buyassociationgroup.com\/en-gb\/?p=6093293"},"modified":"2023-07-09T20:50:45","modified_gmt":"2023-07-09T19:50:45","slug":"residential-vs-commercial-property-investment","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/2023\/03\/31\/residential-vs-commercial-property-investment\/","title":{"rendered":"Residential vs commercial property investment"},"content":{"rendered":"

Investing in real estate can be a lucrative source of income, but when it comes to\u00a0residential vs commercial property, deciding which is better for you<\/strong>\u00a0can be difficult given how broadly these two sectors vary.<\/p>\n

While commercial property investment can be more profitable in the long run, there are more initial costs and paperwork to deal with in comparison to investing in residential property.<\/p>\n

In this guide, the BuyAssociation team covers everything you need to know about residential vs commercial property investment. We\u2019ll discuss the key differences between the two, as well as the pros and cons of each investment type, to help you decide which option is best for you.<\/p>\n

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Residential vs commercial property: What’s the difference?<\/h2>\n

If you’re considering making a residential or commercial property investment, understanding the difference between the two so you can make an informed decision is essential.<\/p>\n

A residential property is usually intended as a home for individuals or families and includes flats, terraced houses, semi-detached houses, and detached houses.\u00a0Most people who invest in residential property but don’t occupy the property themselves will rent it out to others<\/a>\u00a0so that they can generate income from the property.<\/p>\n

A commercial property, on the other hand, is used solely for business purposes, and can include offices, warehouses, retail spaces, restaurants, and more.<\/p>\n

Commercial property owners might choose to run their own business out of their space, but most investors in such properties tend to lease them out to other businesses. A lot of companies prefer to rent a space rather than buy one as this allows them to save money, which can then be invested elsewhere in their business.<\/p>\n

Typically, an investor can expect to see the following differences between the two property types:<\/p>\n\n\n\n\n\n\n\n\n\n
<\/td>\nResidential<\/strong><\/td>\nCommercial<\/strong><\/td>\n<\/tr>\n
Profit<\/strong><\/td>\nLower<\/td>\nHigher<\/td>\n<\/tr>\n
Initial investment<\/strong><\/td>\nLower<\/td>\nHigher<\/td>\n<\/tr>\n
Length of lease<\/strong><\/td>\nShorter<\/td>\nLonger<\/td>\n<\/tr>\n
Paperwork\/admin<\/strong><\/td>\nLess<\/td>\nMore<\/td>\n<\/tr>\n
Maintenance<\/strong><\/td>\nLandlord (usually) pays<\/td>\nTenant (usually) pays<\/td>\n<\/tr>\n
Rent payments<\/strong><\/td>\nMonthly\/weekly in advance<\/td>\nThree months+ in advance<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/h2>\n

The pros and cons of residential vs commercial property investment<\/h2>\n

Weighing up the advantages and disadvantages of investing in residential vs commercial property can be incredibly useful in helping you decide which property type would best suit your budget and lifestyle.<\/p>\n

Let’s start with the pros and cons of investing in residential property:<\/p>\n

Pros of being a residential landlord<\/h3>\n