Residential or Commercial Property: Where Should You Invest Your Money for Maximum Returns?
The property market is still bucking the current downward financial trend and remains an attractive option for investors. However, deciding to invest in commercial property or residential property can be difficult. These two property sectors are different and can deliver different results.
In most cases, commercial property is seen as being more profitable, but the initial investment is often higher. The paperwork and legal process are usually more complicated and time-consuming as well. There are advantages and disadvantages to investing in either sector, is commercial property investment going to give you the best returns or is residential property a better choice?
Residential property investment
The residential property sector is focused on properties that are designed as living spaces for individuals, couples and families. They may be flats and maisonettes, detached and semi-detached houses as well as terraced and link houses.
The rental term is usually shorter than you would find with a commercial property. There is less administrative paperwork (in most cases) and the initial investment is lower. Although landlords receive payments weekly or monthly on a rented out residential property, they are liable for all the maintenance costs, including buildings insurance. However, most landlords will include a percentage in the weekly/monthly rent to allow for these expenses.
Invest in Residential and Commercial Property in United Kingdom
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