If you have no experience with real estate, knowing the differences between commercial and residential property might not be as easy as it sounds. Before hiring a Metal Construction Company to undertake your building venture, it’s essential to know the difference between commercial and residential alternatives. Some of these include:
Valuation and Property Tax
Commercial properties are charged higher tax rates compared to residences because of valuation. . Some of the elements used to evaluate residences include nature, desirability, size, and location. Commercial properties, on the other hand, have additional aspects including income earned – which raises taxes as a result.
Residential titles can only be used as a living space and it’s illegal for any commercial activities to take place. The same can be said for a commercial property unless the area is rezoned to suit a new purpose. Some buildings come with mixed titles which allow for both commercial and residential use.
Financial Support Margins
Residential properties tend to have more financing options compared to commercial alternatives. Loans on commercial properties also tend to have a higher interest rate and have no mandated restrictions on the margins provided. If you’re looking for affordable building services, call us today! Apollo Construction Company Inc, your top-rated commercial contractor.