Uploaded on Jul 21, 2022
Both have their respective advantages and disadvantages that any investor in the real estate market worth their salt must take into consideration. These factors are not permanent and tend to be influenced by the current economical or political climate and policies such as the property taxes of the area they are situated in.
Advantages of Residential Real Estate
Advantages
of
Residential
Real Estate
About Real Estate
When one starts off in the business of real estate, they
are given two choices by their real estate agent as to
what kind of property to first buy or sell as their first
real estate investments: residential property and
commercial real estate. The former pertains to
properties that people live in such as a condo in Laguna
, while the latter refers to infrastructure involved in
business and industry like a plug-and-play office space
in Makati.
Entry Cost is Relatively Lower
Compared to Commercial Real Estate
An obvious advantage that some residential
real estate possess over commercial real
estate is their lower cost which can provide
new investors the first step in their careers.
Examples of these are condominium units, a
staple of the urban life and one that is often in
demand depending on their area but also
offers a high chance of increase in their
property values.
Residential Real Estates are Less
Susceptible to Economic Downturns
Whenever the
economy is struck by an untimely crisis, it is often
businesses which are first affected to a significant
degree. This in turn leads many tenants in
commercial properties being evicted due to financial
issues, which then affects the income of the
landlord. This volatility is reflected in an article by
Business Mirror about the current average office
space rent in Manila wherein according to Colliers,
an influential real-estate firm, the cost for renting
office properties in Manila had dropped by 30% due
to the pandemic.
Potential Tenants are More
Numerous Compared to Commercial
Real Estates
In comparison to the pool of occupiers available
for commercial real estates, the number of
tenants in residential properties are vastly
higher depending on the demographic. This can
make the search for a suitable tenant for one’s
real estates to be quicker in comparison to their
commercial counterparts.
As long as the requirements are reasonable, an
investor should not face any issues in filling up
their properties with tenants.
Residential Real Estate
Investment Tenants are Less
Likely to Leave
Long-term tenants are likely to form attachments
to the homes they have lived in for a while, and
this is especially true if the place is well-kept and
built in a convenient spot. Under optimal
circumstances, tenant retention should be the
least of one’s worries for investors in residential
real estates.
A well-maintained residential real estate can go a
long way in ensuring the long-term profit of the
property for the investor.
Aside from residential and
commercial, real estate investing
can also be facilitated through
real estate investment trust.
For the beginner real estate investor, a condominium is
a good choice to pick when starting out, and for those
looking to invest on a future condo in Laguna, why not
consider Crown Asia’s Valenza Mansions?
“ As the first Italian inspired condo in Laguna, Valenza Mansions will offer four types of RFO and Pre-selling real estate properties for sale in the form of studio units and 1-, 2-, and 3-bedroom units. Valenza Mansions also has plans for
numerous amenities for their unit owners such as a fitness gym, function room,
garden area, and a swimming pool. In terms of convenience, Valenza Mansions is
located within Crown Asia’s expansive gated community of the same name,
providing a sense of privacy and exclusivity to any future homeowners.
”
Contact us
Get in touch with us
Head Office
LGF, Building B, Evia Lifestyle Center, Daang Hari
Road, Almanza Dos, Las Piñas, 1750 Metro Manila
Phone No. Inquiries (House & Inquiries (Condominium)
(+639) 56 654 8258
(+632) 8882 7696 Lot)
(+639) 56 380 0015
To know more visit us now at
www.crownasia.com.ph
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