Investing in commercial property has several advantages. Firstly, it will ensure long term secure inflow of cash. With commercial property, one can sign long lease contracts. Commercial property decreases the chances of defaults on the payments.

Onus of maintenance of the property lies solely on the tenant as he will have to look after the property. Renting of commercial property is an excellent way to generate good income. The only time the property can prove to be burden is when there is a slump in the property rates.
Maintaining a residential property can prove cumbersome and is no easy task and it is very essential to keep the property in very good condition at all times. Maintenance of house requires one to spend quite some amount of money. Today, with the upsurge in market rates, people are investing a good deal as they get good returns on their investments.

Commercial property is a very stable and a profitable option to invest compared to residential property though majority of the people still prefer residential investments. This is because investing in commercial property entails higher risks as compared to residential investments. One of the major risks involved with commercial property includes poor liquidity in comparison to the bonds as well as equities and it becomes difficult to find a buyer. The price can be quoted to the buyers depending on the market conditions. If the investment portfolio is diverse, resistance and sustainability to tough market conditions will also be better. Investing only on single property can prove to be really risky because even a little decline in the sector can have negative implications on your investment. These are the demerits of investing on a commercial property and are the very reasons why people largely prefer residential investments.

You must keep it mind that the location of the property is of prime importance and a major factor in determining the value of the property along with the rent. If the location and the facilities in the area of the property are good, it will have only positive implications and also there will be good scope for developments in the future.

In case of commercial property, it is very important that you choose your tenants wisely. It is wise to pick tenants who are very consistent and have a good credit history and low credit risk and who sign long term leases. Apart from all this, the commercial success mainly depends on the market conditions. While making commercial investments, keep in mind the future developments and future prospects.
When it comes to residential property, people prefer investing in the form of fixed deposits by which they can alleviate risks and aid the investor keeping him for losing money in case of a miss – investment.

Hence, it is a universal fact that investing in residential property paints a better picture than investing in commercial property as the risks involved are much lesser and it is a safe bet for those who want to play it safe.