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[edit] Residential real estate

Investment in residential real estate is the most common form of real estate investment measured by number of participants because it includes property purchased as a primary residence. In many cases the buyer does not have the full purchase price for a property and must engage a lender such as a bank, finance company or private lender. Different countries have their individual normal lending levels, but usually they will fall into the range of 70–90% of the purchase price. Against other types of real estate, residential real estate is the least risky.^{[citation needed]}

[edit] Commercial real estate

Commercial real estate consists of multifamily apartments, office buildings, retail space, hotels and motels, warehouses, and other commercial properties. Due to the higher risk of commercial real estate, loan-to-value ratios allowed by banks and other lenders are lower and often fall in the range of 50–70%.^{[citation needed]}

[edit] See also

[edit] Notes

^ Graham, Benjamin and David Dodd (1951). Security Analysis. McGraw–Hill Book Company. ISBN 007144829.
^ Kevin A. Hassett (2008, 2nd ed.). "Investment," The Concise Encyclopedia of Economics. Library of Economics and Liberty.

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