There are generally four types of real estate properties out on the market today: There is raw land, farm land, residential land, and commercial land. So, when you look at the types of properties we’re dealing with, people will ask “what’s the different between raw land and farm land?” raw land has no income purpose since God created it so it just holds the world together. You probably wouldn’t want any of that because you have to pay cash for it. Now, farm land is highly specialized in that it has income because the farmer has potential to get income from that land.
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So, it’s a different category from vacant land or raw land, and farm land. The two areas that we will be concerned with are primarily residential real estate and commercial real estate. Let’s look at what the differences would be:

If you look at residential real estate there are three types: Condominiums, Single Family homes, and small multi-units. Where did the commercial term come from? When you look at it, it’s likemulti-units. It comes from a financing term, and this term has to do with office buildings, strip malls, industrial lots, etc. There are two types of loans in real estate: residential loans and commercial loans. IF you are buying a single family home, or a duplex or up to a four plex, you would have to apply for a residential loan.

Canadian Outlook

If you’re looking to buy, it’s great news, but if you already own, it’s terrible: According to new evidence, Canadian home prices could decline by 20 per cent, may not hit bottom until late 2011. It
could be seven years or longer before prices recover to today’s levels. Maclean’s senior editor Duncan Hood reveals a frightening new forecast made by a brand new housing futures market. The new market allows sophisticated investors to bet on where house prices are going, and it predicts that prices will fall by much more than most economists are predicting right now (Macleans, 2009).
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European/UK Outlook:

The message is clear: the property market is set to continue to fall throughout 2009. Yes, Britons are to witness thousands of pounds being wiped off the value of their homes, according to banks, estate agents and other sector commentators. According to a recent report by the Land Registry, the average price of a property stood at £161,883 in November. This marks a 1.9 drop from October’s prices and a 12.2 per cent reduction from the same month in 2007. Every region in England and Wales saw a decrease in property values over the past year (Know your money, 2009).

American Outlook:

Americans fear home prices will drop more sharply in the coming year, despite government efforts to resuscitate the battered real estate sector, according to a poll released on Friday.

U.S. homeowners surveyed by Reuters and University of Michigan predicted their home values would fall by 2.2 percent in the year ahead, the biggest anticipated decline in the past few years (Yahoo, 2009).

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Any unit, if its a multi-unit, those have residential loans and the rules are totally different for them. If you hear someone say “you don’t qualify” they are tlaking about a residential loan because you are the person qualifying for the loan, but in commercial the property is the criterial for qualification. So, because there are two types of real estate, an office might not be zoned commercial in some areas and be zoned “O” zone and so on. So, zoning issues can be fairly complex. So, under financing commercial would probably be your best bet in terms of investments.