Month: April 2017

Residential vs Commercial, which space to opt for Rental Gains?

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Investment is a term which can make anyone starry-eyed, as soon as it enters one’s ear. It’s just like a dessert which everyone loves to dig in, desires to have more, makes one extremely happy when it is good, but in the same way, is a spoiler when not as expected. So it is necessary to choose your dessert wisely. You must give your brain a good exercise before jumping into a decision to invest. If you think what difference is it going to make if I choose residential or commercial realty space for investment, then you are wrong. There is a lot you need to know. Want to know what? Read on!

Majority of us get attracted to apartments when it comes to an investment, as we find it easy and safe. But surprisingly, commercial property is the real treasure! According to the experts, commercial spaces can fetch you higher returns compared to the residential ones. Here are the benefits and drawbacks of both.

BENEFITS

Investing in a Commercial Property:

  • Long lease periods are possible, which will give you steady and higher assured returns
  • Maintenance or repairs become the tenants’ responsibility
  • Commercial spaces will definitely give you a lot more than the original purchase value and that too in a short period of time
  • The number of terms and conditions in a lease agreement are less as compared to the residential one

Investing in a Residential Property:

  • Residential investments are easier to understand, they are less complex and any newbie investor can own one easily
  • Housing segment is always on demand and so market fluctuations do not affect it much
  • The valuation of house rental is done on the sales comparison basis. As you can easily find sold residential properties that are identical to the one you stayed in or were looking for, the rentals are almost similar

DRAWBACKS

Investing in a Commercial Property:

  • Commercial ones need to be studied well and then invested. Seeking professional guidance may help you get an excellent property that will generate a fixed extra income
  • As commercial segment receives the direct impact of the economy and real estate market cycles, it comes with leasing and vacancy risks
  • Valuation varies in the commercial ones, as hardly any offices or shops look identical. So, sales comparison is rarely done and income approach is much preferred

Investing in a Residential Property:

  • You may face the need to sell the property anytime, so longer lease periods become difficult
  • Being the landlord, all the maintenance or repair cost will fall on your shoulders
  • You will get more than your original purchase price, but if the property value is down, chances are that you may get only a few percent higher than your purchase value
  • The lease terms and conditions of this segment are lengthy and deep

Pros and cons are a part of life. Everything in the world comes with them and so, analyzing, understanding and choosing what is good for you or beneficial to you will make you a winner. Sun Builders is one such real estate developer in Ahmedabad that offers you myriad varieties of residential and commercial realty spaces, at profitable locations with class apart amenities and clear and hassle free transactions, which will all guarantee to give you excellent rental returns.

So, come and explore our projects and select the property you desire, to gain the jackpot of rental returns. Visit www.sunbuilders.in now!

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