Question

How has the research changed your perspective about the topic or about banking?

With real estate, people are able to maintain their own piece of property. Residential real estate is more favorable for individuals due to the cheaper prices. Commercial real estate is there for the investors that look for higher values. The groups that follow commercial real estate are those who own places of business like hotels, offices, and apartments. Real estate stability is determined by how expensive it is. More expenses mean more loans from the commercial banks.

Answer 1

This topic relates to comparison between the commercial real estate and the residential real estate as residential real estate will always be preferred by those who are looking for a home and commercial real estates are always for those investors who are looking to generate an investment income by investing into those property and selling out when they are getting exit at higher price.

Residential real state are supposed to be cheaper in their prices but commercial real estate will be higher as they are meant for business will have higher prices.

Real state is always a part of major fluctuations in the economy due to the nature of the person holding it because either the person is trying to hold a residential real estate or if he is an investor he will be looking for holding onto commercial real estate and the loans are also guaranteed by the banks on the basis of real estate so there is a huge dependence upon the real state of the whole economy, because faultering of the sector means recession in the whole economy as seen in 2008 crisis.