Residential Properties Investment for Attractive Rental Income

When we do business, we expect benefits. We are going to discuss some points about income returns from residential and commercial properties in the below paragraphs. These points could help you to know about domestic and commercial and business and select the right place in which we have to invest.

Residential Property Investment

In India we see more houses construct for rental basis by the owners. However, there will be minimum operating expenses for these rental homes.

1. Unlike residential property, clearance of legalities is harder for commercial properties, and you will get higher rents and great benefits only if we get a good deal of extended lease period.

2. Rental costs will not be affected by the trends and fluctuations of the market, but when it comes to commercial properties, the cost will greatly depend on the value and demand of markets.

3. Before investing in commercial properties, we have to check the market demand and conditions. However, it will not be the same for residential properties as we can invest directly.

Commercial Property Investment

Commercial properties like shopping malls demand bigger cash flow. Also, they are used more for leasing purpose. 

1.  Comparatively, commercial properties are more expensive than residential properties.

2.  The period will be long for commercial properties and get more rents than residential properties.

3. In commercial properties, all maintenance and repairing charges are tenant's responsibility, but in residential properties, entire liability depends upon landlords.

Overall, commercial properties rental income is more than residential properties returns. However one should have an eye on various aspects like the correct selection of project, price, present marketing conditions, location, market demand, etc.

--Shailaja K