From: "Tyrone" 
Newsgroups: misc.invest.real-estate
Subject: Re: Invest in Commercial vs. Residential Real Estate?
Date: Tue, 27 Apr 2004 21:19:14 GMT


"Jonathan"  wrote in message
news:87fbbd29.0404270906.21c1025d@posting.google.com...
> I was wondering if anyone knew whether there were any advantages of
> either investing in commercial vs. residential property.  It seems
> that all the messages on this board have to do with residential but no
> one has really thought about investing in commercial buildings.  I am
> somewhat familiar with commercial real estate and I know that when
> these leases are signed, it is often for multi-years (5+ years).  Does
> the current bubble apply as much to the commercial real estate market
> as the residential?
>
> Anyone have any insight? Thanks.

I believe the majority of the bubble is residentially oriented.
Residential property purchases are mostly done on emotion whereas
commercial purchases are based on facts and figures.  If the numbers
aren't right, the commercial deal doesn't fly.  OTOH, residential buyers
can always justify why they are willing to pay too much for a particular
property.  If you are looking to invest in flips, the residential market
is currently the place to be.  Now tomorrow, may be a whole new ball
game.