Comparing ROI and risks.

Investors often face a dilemma: should they bid for a flat (Residential) or a shop/office (Commercial)? Both have distinct risk-reward profiles in the auction market.

Residential Properties

Pros: Lower ticket size, easier to get loans, higher liquidity (easier to resell).
Cons: Lower rental yield (2-3%), emotional attachment of borrowers makes eviction harder.
Verdict: Best for end-users and first-time investors.

Commercial Properties

Pros: High rental yield (6-9%), longer lease terms (3-9 years), professional tenants.
Cons: Higher entry cost, harder to evaluate (business potential matters), GST is applicable (18% on top of price), loans are costlier.
Verdict: Best for seasoned investors seeking passive income. Commercial auctions often see less competition than residential ones, offering a chance for better bargains.