What are the benefits of residential property compared to commercial property?
Residential property investment is very different to commercial property investment and needs different expertise and experience in order to gain the best returns.
In general, residential property provides:
- Diversification – low correlation to other mainstream asset classes, including commercial property.
- Improved liquidity – whilst liquidity risk will exist for any property fund, it is generally easier to sell a house than a large commercial property as the residential market is larger and more active and with lower unit sizes.
- Historically greater resilience of rental income during market downturns