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Residential And Commercial Real Estate - Difference

Updated on June 27, 2014

Do you know what are the differences between residential and commercial real estate Investment? Investor who has purchased both commercial & residential properties should know the difference between the two to avoid gettting into trouble. There are many details that set these two types of properties apart from each other. To make the best of your situation you should know what commercial real estate is, and how it differs itself from residential properties.

The most basic difference is how the two types of properties are used. In residential real estate properties people live which includes single family homes, condos, town homes, etc.wheras,In commercial real estate where people work which includes things such as office buildings, retail space, and other properties along those lines. So as you can see, you live in residential real estate and work in commercial real estate.

Additionally, the way that you invest in the two may differ greatly. Although real estate investing is similar for both,the fact of the matter is that your strategy may be a bit different for a number of different reasons.If you are buying commercial real estate you are probably going to spend more money. Eventhough it not always the case, but most of the time it is true. For this reason, you will have to tweak your initial strategy in order to be in the right track.

Finally, do not make the worst mistake of your life by thinking that you can turn commercial real estate into residential or vice versa. Properties are zoned a specific way for a reason, and there are not too many ways that you can get around this. So if you want to buy commercial real estate, make sure that is what you are getting.

Overall, there are quite a few differences between commercial and residential real estate. You should know these differences before you ever make a purchase. This is the only way to ensure that you get the most out of your purchase. Making a mistake when spending a lot of money on real estate is never fun!


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      6 years ago

      thanks for superb explanation

    • profile image


      6 years ago

      Great hub, looking forward to come back and fascinted by your posts. Thank you.

      Ron from

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      Basanta Kumar 

      7 years ago

      Nice explanation.. thank u...

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      miami the best 

      8 years ago


      thanks for great comment. I was really need that. Keep up with your great comments.


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      9 years ago

      is there any differnce i.e. zoning in England or, in England, is it possible to turn easily a residential into a commercial and the other way round?

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      10 years ago from USA

      your hub give more confedential information for real estate invester ..!

      thank you ..!


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