Firstly, need to know the market status, in accordance with the property. Investing in property is quite beneficial. It is one of the best methods to save our budget. Before investing into the property, we need to have a clear idea about the type of property we are looking for i.e., the residential property or commercial property. Both have their pros and cons, the basic criteria we need to consider is our strength to afford on a longer period of time and move further.
Commercial properties include office spaces, medical centers, restaurants and hotels, industrial area, agricultural land, warehouses. All these generate a huge income on monthly basis. The main commercial property investments include the cash inflows, outflows and timing of the cash flows. The property rent, operating costs, parking fee, vending fee, service charges all come under the inflow cash of the commercial property. The cash outflow includes initial down payment, operating expenses and tax and leasing costs.
Residential properties include single family housing, multi-family housing and mobile housing. These are mostly used for residential purposes. These also generate income to the residential owners. But one need to be very careful to rent a house to others as maintenance of the house is very important. Before investing in the property, we should evaluate the property value with experts and take the opinion of the local residents near the place. Buying in the wrong locality is risk involved which would waste our money and time.
Residential tenants are available even if the economic conditions are not good as it is mandatory to have a house for an individual where as the market in the commercial property mainly depends on the economic conditions. Also the resale for a residential property is quite easier compared to the commercial as the commercial property involves huge amounts of money. The lease period for commercial properties is usually longer when compared to the residential properties, which makes more in flow cash for commercial properties.
The type of property i.e., whether to invest in commercial property or residential property mainly depends on the individual’s interest, the budget amount for the down payment and the locality of the property. The cost for both commercial and residential properties is expensive near centre of the city. To get more details about commercial and residential properties in Spain please check with real estate agents, as they are well known in real estate industry.