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Why do you think some real estate investors prefer commercial properties to residential?

Why do you think some real estate investors prefer commercial properties to residential?

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Answer #1

1. The income generated through rents is higher from commercial properties compared to residential.

2. Risk and volatility are higher in residential properties compared to that of commercial properties.

3. It is easy to invest in commercial properties through REITs (Real Estate Investment Trusts) whereas investing in residential property is difficult due to illiquidity issues.

For the above-mentioned reasons, some real estate investors prefer commercial properties to residential.

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