Commercial or Residential property?

Discussion in 'Australia Property' started by mattio, Jan 11, 2013.

  1. mattio

    mattio New Member

    I have a question. I wonder what property do you prefer investing in? Residential or commercial? I know that it is easier to get a loan for residential property and you can get it with 10% up front, when for commercial property you need a significantly higher up front payment. But what do you prefer and why?
     
  2. ellers

    ellers New Member

    I've only invested in residential, but I've wanted to reduce those holdings and move into commercial real estate for some time. I've not been able to cross that divide though. Put to the side the higher deposit requirements, I've been nervous about my lack of experience in negotiating commercial deals. It's probably a case of "get into it, make some mistakes and adapt" but it's still intimidating.
     
  3. investproperty1

    investproperty1 New Member

    Commercial real estate may be a great investment for some, but I prefer residential real estate and I think most investors are better off with residential rental properties as well. Investing in residential properties is sometimes more be beneficial, because there are more of them, and it is easier to buy them below market. But if an investor is well versed in commercial and willing to work hard, you can make a lot of money with commercial real estate as well.

    ---- Peter
     
  4. propertybuzz

    propertybuzz New Member

    Commercial or residential must depend on location too. That decides rental yield.
     
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