My answer to that is and will always be Residential. Why?

First of all, if you’re in residential property you can achieve a higher lending ratio, thus buy more properties with the cash or equity you have. For example, if you want to buy a shop, you’d be lucky to get a 70% loan for it as it is a commercial venture, and you’ll also pay a higher commercial interest rate.

With commercial, you are restricted to borrowing less and you pay more for it! Whilst with residential you can often borrow up to 95% depending on where you are buying and the lender’s criteria, and get a lower interest rate. The more property you have the more you make when prices move. Simple.

This is just one of the rules of the game that you either learn the hard way, by your own mistakes, or the easy way by educating yourself and getting professional help. Just make sure of course, you have sufficient income from your rents to pay your mortgages!

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