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Residential Projects Succeed Over Commercial Sector

By Author: Gabriel
Total Articles: 2

Whatever may be the investment that is either second home or an apartment with a scope of value rise? Although, some purchasers may have a well planned strategy towards investing in residential real estate assets, in some cases, it may end up in failure situation.
Read on the content to spot out the variations between a commercial and a residential asset:
• In general, the cost of residential asset is much cheaper than that of a commercial property. Though people think that they can own this kind of building for running small shops, small offices etc at a cost grade of apartments, but normally for owning a shopping mall, office blocks etc, the cost of property will exceed double that of housing properties.
• From this, it is clear that investors can’t value the investment from the kind of business but can value it only from the property space. When it comes to commercial property investment, the investors have to get the help from real estate agent. On another hand, the investors can also compare the cost of residential homes in a particular place by hiring a professional.
• Another major factor is that of lease. In the case of housing units, the leasing period will be either for 1 year or less and also the amount of deposit will be less. But in case of a commercial building, one has to lease it for a longer duration and also the deposit amount will be higher.
• The greatest benefit is due to the shortage in the supply of residential homes, buying a home or apartment will continue to benefit the investors in terms of capital increase.
Reasons for Investing in a housing unit:
• The popular reason why buying residential home is more profitable than commercial property is the smaller amount that is spend for investment. When going through the estimate, one can borrow the full amount needed for the home purchase whereas when it is for commercial property investment, one can get just /-3rd of the amount.
• Mortgage rate for residential real estate will be less when compared to commercial building.
• Owning to the involvement of higher amount, any delays taking place in the payments lead to complication. Also, investors would be subjected to extra amount.
• Finding tenants for leasing is easier in Chennai real estate projects because of simple lease agreements. Where in the case of commercial real estate, it may take months and months. Thus, investments over residential real estate are always safer in the market than any other investment.
Today, residential market assures a lucrative show of investment. Along with evolving destinations like Bangalore, Mumbai, Gurgaon and Delhi, real estate investment in Chennai will also gain prominence. In this city, commercial market also exhibits a profitable show similar to housing sector.

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