Are you confused about buying which of these properties? Then you’re at a right place, so go ahead to remove all the confusions you are struggling with and search for what’s best for you. Talking about the best and more secured opportunity to invest in Pakistan is real estate market which not only provides profitable properties but also helps you to be financially stabled.
There are uncountable options in properties but two have really got an importance out of all those, hence are known as commercial and residential properties. These properties have always been a part of debate since decades. Let’s have a look on both types and what they have more to offer!
What is commercial property?
Commercial properties such as retail shops, Hotels, public necessities, office buildings, warehouses, industrial buildings etcetera. From commercial property, an owner can start a business either owning or renting a space as companies tend to rent the property rather than owning it. The commercial property is known to be considerable investment market as real estate is not the key business so they prefer not to buy but rent. This is way better and productive asset than residential property.
The Benefits of commercial Property
Usually there are so many benefits of owning commercial property because owners of business face different issues regarding either rent or buy their office space. In real estate market, a commercial property can provide the basis for growing businesses. Following are the benefits you should be aware.
- Favorable Rates
- Fair Appreciation
- Reasonable Prices
- Chances of Cash flow
Favorable Rates:
The mortgage interest rate is the most important cost of buying real estate property. Rates are always in the favor of purchaser as it continues to be low all the time. It is usually one of a difficult task to maintain a spotless financial profile to obtain a challenge, meanwhile, it is better to be prepared with a comprehensive business Idea so that success would become easier for you. So this is one of the basic benefit one could ever come across.
Fair Appreciation:
When you work with equity and justice in your business, it becomes worth profitable so that you can purchase to grow your business better. To manage your business with high versatility, this would help in all the purposes. At the time of retirement, you can also sell your property to another purchaser as it gives so many options in the time of your needs.
Reasonable Prices
For dental practices, commercial properties are less expensive than before, same goes for industrial, and office spaces. It costs less to buy a property than to rent it, during the time of real estate downfall, the value of property decreased and the rates were high. But now is the time to purchase or rent a commercial property as the prices are low enough to meet your financial status.
Chances of cash flow:
Cash flow is what we actually wish for, whenever investing in a business. So if you buy a commercial property that contains a space for residents then you definitely have further options for cash flow through a rental income too.
What is Residential property?
Apparently, Residential properties are those which includes properties other than commercial real estate, such as apartments, single-family houses, and townhouses etcetera. Now it depends on property owner whether to rent it or live in it. Renting means to enjoy extra income so this is why families prefer to rent residential properties in case of fruitful outcomes. It is definitely not beneficial for those who lives in someone’s house as this place is considered as a primary residence for them. Now your wait is over, you are all knowledgeable enough now where to invest or what to purchase in both the properties.
Benefits of Residential Property
Residential properties involves plenty of benefits for the people who rent their properties as well as to live in it. Following are some of the advantages you should be aware of:
- Value dependency
- Beneficial Investment
- Rental income
- Opportunity for unemployed people
Value Dependency:
It is the best way to make money as per increment in properties which means whenever the worth of property increases, you would get benefitted in terms of renting it. In case of purchasing the property, the decrease in value would be fruitful to buy at this time.
Beneficial Investment:
This type of property can let you leverage your investments in a way that if you purchase a house and invest money for the renovation purpose to make it look attractive towards the rentals. The investment you do a single time would become profitable as an outcome.
Rental Income:
In a world full of competition, the income from a job is not enough in this era as it requires other than needs. So renting your real estate residential property will be the best option to get income every month to fulfill all the requirements, also saving that money in future would be a perfect idea.
Opportunity for unemployed People:
Renting property is one of the best options for unemployed people, you just have to invest your saving in a property and rent it to get income every month.
Types of Commercial and Residential Property
There are several types in which four are needed to be discussed
Primary purpose:
The commercial properties come by for business and investment purposes which means people gat shops and office spaces to earn income, monthly. However, residential properties are made for nuclear or joint families. The only purpose is accommodation of residential area.
Opportunities:
This type is purely used for commerce and business, so offices and shops might act as basic business centers for them. Meanwhile, residential property is also about renting and you have an option to sell whenever the right time comes.
Laws and Regulation:
The residential property has different laws and regulations than a commercial property as residential is way more lenient because it focuses on the rights of residents while commercial laws and strict and based on equal rights, so both parties are required to negotiate.
Design and structure:
Residential property always comes up with different design and structure like design of apartments hit different and architecture of house hits different. On the other hand commercial suffers different costs in terms of warehouses, piping and wiring, all costs hit differently.
