Choosing Between Residential and Commercial Investments

The Canadian Real Estate Investor · May 6, 2025 · 43m

The key differences between residential and commercial real estate investing in Canada. Here are three main takeaways:

Residential real estate is more accessible for beginners, requiring lower down payments (as low as 5% for house hacking, typically 20% for investment properties) and offering simpler management, though with lower returns (5-8%).

Commercial properties require higher initial investments (20-30% down, sometimes up to 50%) but can offer superior returns through longer lease terms and net lease structures where tenants cover various expenses.

While residential properties provide…