There are two main types of real estate: residential and commercial. Residential real estate is residential land or new construction. Other types of real estate include ranches, condominiums, townhouses, duplexes, and vacation homes. Commercial properties are business or industrial premises, and may also be vacant land or buildings. Most people buy residential property to live in, but some people also buy commercial property to build a business or office. For example, commercial property is land that is unused, undeveloped, or used for farming.
Commercial real estate is different than residential property. Residential property is land or buildings that are meant for private residence. It may be owner-occupied or leased. For example, a multi-family house or apartment building can be considered commercial. A condominium is a building with five or more units. A condo is a single-family home that has one unit. It’s important to note that commercial properties are usually much bigger than residential properties.
Residential property includes single-family homes, condominiums, and townhouses. The term “residential” is also used for multi-family rental properties with four or fewer units. On the other hand, commercial property is used for businesses, generating cash flow, and is the most common type of real estate. It includes office buildings, strip malls, gas stations, shopping centers, and apartment buildings. It also includes land and buildings that are used for manufacturing, warehouses, and fabricating.