Residential vs commercial | What is the difference and which real estate sector best suits you?
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Loading... - Nancy William
- 25 Mar 2022
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Becoming a real estate agent just became far more achievable as many of the onerous qualification roadblocks are now removed thanks to the introduction of the new Property Practitioners Act.
According to Tony Clarke, Chairperson of the Real Estate Business Owners of South Africa (REBOSA), the new act is a welcome step in the right direction for an industry previously plagued by unclear and often poorly implemented legislation. The new regulations also promise smoother and more affordable property practitioner training.
Real estate has long been regarded as one of the best long-term investments as the property market is not subject to the same risks and frequent fluctuations as the stock market and, although cyclical by nature, property remains a basic need.
It’s therefore also an excellent career choice but, there’s a lot more to selling a property than planting a For Sale sign and arranging viewings so those merely looking to make a quick, easy buck, won’t last very long,
“However, although both the residential and commercial sectors involve the sale or rental of bricks and mortar, there are a number of significant differences between them and these need to be carefully considered before making a decision.
“Not only are the working environments quite different, but many day-to-day tasks in each sector also require different skill sets so although an agent can work in both sectors, usually one will better suit their temperament.”
Career aspirations
Brent Townes, Commercial Property Chief Operating Officer in Cape Town for the group says depending on your skills and the area in which you work, there is very good money to be made in both sectors, however, real success will depend on where your passion lies.
“If you are the type of person who thrives in a more structured, professional and less emotional business arena with an eye on the corporate ladder, and you enjoy mixing with the movers and shakers, then the commercial sector is probably the best option for you.
“However, if you enjoy being more personally involved with your clients and operating less formally, and the prospect of helping people to find their forever home or build their personal investment portfolios appeals more to you, then you should consider the residential sector.”
Working environment
Working in the commercial sector is a more traditional full time, Monday to Friday job -and, although you can easily work as many hours - if not more - in the residential sector should you choose to, the latter is more flexible so you can take more time for your personal needs if necessary.
“Commercial is also a more formal environment as you deal mainly with the corporate sector and, as there is less emotion attached to these deals, it’s all about making business happen., says Townes.
“Although residential property is certainly also an investment property, and often the largest one most people ever make, it’s also an emotional investment as it’s the family home, a place where children are raised and memories are made.
“You’ll forge relationships with many families and, quite often, become more involved than you would at a strictly business level.” Read More…
