what differentiates residential property from that of commercial property?
It is quite common to confuse the two, although it is very easy to do if one is not aware of the difference between the two. Residential property essentially means housing where you live or occupy. Commercial property refers to investment real estate, which typically has a rental income attached to it. Although residential and commercial properties are often bought as one, residential property is usually bought when the individual wants a piece of land and does not yet have the funds to buy a building.
There are a lot of obvious differences, such as the fact that there are houses and not apartments, which are more common in residential areas. Another important thing is the fact that single-family homes are built in residential areas, unlike commercial buildings. As we all know, most cities have high-rise apartment complexes, while most suburban communities are built single-family detached houses. Also, unlike what people think, a house can be bought for as little as $100.
So why should anyone care about purchasing a piece of residential property?
Well, there are a lot of reasons why purchasing a piece of residential real estate is a good idea. If the area is close to the location of a college or university, chances are many students would want to live there as they get closer to their studies. Most rental properties are close to the centers of business and shopping, which again, would benefit those who need to commute to work.
Residential property provides an excellent opportunity for home-based business owners. In short, there is less competition in residential areas, which can equate to higher rental rates. Also, many times there is more parking available in residential property than in a rental property, which could equate to higher revenues for a landlord. The presence of schools in the area also draws tenants, which could mean more revenues for the homeowner. Finally, residential areas have less competition for commercial real estate, which again could equate to higher rents.
So, if you’re interested in purchasing residential property, what are some good things to consider?
First, it’s important to realize that purchasing residential property doesn’t have to be a huge financial investment. Many landlords see this as an investment in the future of the business, so don’t let the price of the property hold you back from taking advantage of the unique advantages it offers. It’s important to find a property manager who understands the market and looks out for the best deals for the current and future needs of the property owner. Additionally, getting a good residential property manager can help you negotiate the right terms for a lease or purchase, and can help you through the leasing/rental process. Finally, a residential property manager can help you with any issues that may come up during the life of your agreement, so make sure to ask them about any concerns you have before you sign on the dotted line.
Overall, the total assessed value of residential properties in your area will affect your decision. The greater the assessment roll, the more likely it is you’ll get a bargain on a property in your desired location. It’s also a great idea to hire a residential property manager who has experience negotiating contracts, and can provide advice based on their knowledge of the market. Ultimately, your best bet for finding a bargain is to contact a realtor who can look at your total assessed value and help you narrow down your options based on your budget and needs.