June 2012 Monthly Report
After a strong run in the residential real estate market over the past several years, more and more people have begun
asking questions about commercial real estate and its viability as an investment product. The answer to this
question is that commercial real estate has proven to be a strong, stable investment, especially when compared to
the recent volatility in the stock market or the infinitesimal interest rate returns being paid out by banks.
BC, in particular, has seen a disproportionate number of fortunes being made in commercial real estate
(http://www.vancouversun.com/health/Cancer+donation+sets+record/6676983/story.html). In fact, 4 of the 8 BC-
based billionaires made their fortunes through commercial real estate investments
So what are the similarities and differences between residential and commercial real estate?
Residential and Commercial real estate share some commonalities and the licence to trade either asset category is
the same. That being said, because there are several key differences, real estate agents typically focus on one
category or the other. There are exceptions, of course, and in smaller markets, agents often need to sell all manner
of real estate. Macdonald Realty's sister company, Macdonald Commercial
(http://www.macdonaldcommercial.com) offers professional commercial real estate services in all seven (7) main
commercial real estate asset classes:
Pros of Buying Residential Real Estate:
Because of this, buying a principal residence is one of the best investments you can make. That said, if you're
considering buying real estate as a pure investment, you may also want to consider commercial.
Pros of Buying Commercial Real Estate:
The reason that many people shy away from commercial real estate is one of familiarity. Everyone has had the
experience of living in a residential property and therefore has at least a rudimentary knowledge of what it is. In
commercial, there are so many different asset categories that even seasoned commercial agents tend to focus on a
few of them. After all, a nursing home, a parking lot, and a hotel all require different management skill sets.
Fortunately, professional property management companies, like Macdonald Commercial
(http://www.macdonaldpm.com/), can help you manage a wide range of assets.
If you're interested in learning more about investing in real estate, either commercial or residential, feel free to
contact me at the address above.
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