Commercial vs Residential Real Estate: Where Should You Invest?

The choice between commercial and residential real estate depends on your investment goals, risk tolerance, and available capital. Let's explore both options.

Residential Properties

Advantages: Lower entry costs, easier financing, steady demand, simpler management, shorter vacancy periods.

Challenges: More tenant turnover, emotional decision-making by renters, potentially lower yields.

Commercial Properties

Advantages: Higher yields, longer leases, business tenants often maintain properties better, triple-net leases reduce owner responsibilities.

Challenges: Higher entry costs, economic sensitivity, longer vacancy periods, complex valuations.