Residential purchases are typically evaluated on liveability factors — layout, natural light, neighbourhood amenities — alongside investment potential if relevant. Commercial purchases are usually evaluated more heavily on tenant demand, footfall or business suitability, and lease income potential.

Financing terms, holding costs and exit liquidity can also differ meaningfully between the two categories, which is worth understanding before deciding which type of property fits your goals.

Buyers considering either category for investment purposes should be clear about whether their priority is personal use, rental income, capital appreciation, or some combination, since this shapes which category is more suitable.