High Street Retail Investment Vs. Residential Investment!admin
High Street Retail Investment Vs. Residential Investment!
Deciding between two radically opposite investment opportunities could be tricky. Let’s try to make it simpler for you based on certain parameters:
- Income: High street retail outlets shall offer a higher rental income compared to a residential project.
- Risk: A residential project is less risky as demand for housing is always going to be there. But the high street retail outlet might go without a tenant in adverse market conditions and the cost of acquiring and maintaining is also higher.
- Return on Investment: Price of a residential project will keep growing, but can only be realised if it is sold. With a retail outlet, you can create rental income that might be substantial over a period of time.
- Liquidity: It is always easier to sell a residential project compared to a high street retail outlet due to the scarcity of buyers. It is easier to create passive income off a retail investment than selling it and earning handsome returns.
- Lease: Residential lease agreements are formed for a short-term duration compared to retail investments, which can go on for up to 10years at a time. This helps in ensuring continuity of rental income.
- Cost: Buying a house is much economical compared to buying a high street retail outlet. One can buy a modest house in a decent locality and use it to create rental income, but need deep pockets or economical modes of financing to buy a retail outlet
- Tenants: Those using to establish their business in a high street retail outlet shall spend money on maintenance, repairs, etc. the benefit to landlord is enormous in terms of saving costs. A tenant in a residential project would, however, be more demanding
There is no good or bad investment. All depends on one’s priorities, financial strength and long-term goals with adequate priorities. The only sound decision is to invest in retail property to enjoy uninterrupted income flow!