The Advantages of Buying Commercial Space
There are those that will tell you that it’s best to never actually own anything, to go through life leasing homes, business locations, automobiles, etc. By doing so, you will avoid the headaches that go along with ownership. Those people are very shortsighted and cannot see the big picture. Owning business buildings can work out very well for an entrepreneur. The advantages of buying commercial space far outweigh its disadvantages.
As the owner of a commercial building, you can reduce your tax liability by deducting its depreciation and mortgage interest payments. You’ll also be able to write off repair bills, taxes, building maintenance, and many other costs. If you buy a building instead of leasing space, you can most likely expect the building to go up in value. Whenever you decide to sell the building, you could realize the gain as income. Aside from the tax benefits, there are other reasons to buy business buildings. Since you’re the owner, you can make all the decisions about how the building is maintained, improved or altered. Your customers will look upon any improvements to the commercial space as favorable.
Another advantage of buying business locations is that you won’t have to worry about the ever-increasing rental charges like you would if you were leasing space. While going through the sales transaction, you may be able to get a fixed rate for 80% of your mortgage loan, and because of this, most of your monthly payment doesn’t go up. You might be able to refinance the loan and get a lower rate, thereby reducing your monthly expenditure. When you pay off the mortgage, you can say goodbye to those monthly disbursements.
An additional perk of being the proud owner of a lot of commercial space is that you have the room to expand in the future. Also, having a stable, long-term location always looks good to your customers. If you choose, you can lease some of your space to other businesses. This new source of income can help with your monthly mortgage payments. Having extra money for your mortgage will free up funds for other areas of your business; this would be the stuff that dreams are made of for entrepreneurs.
Business owners always have to implement plans that will move the company forward in a positive way. One way of moving forward is to purchase the building that they will be doing business out of for several years to come instead of leasing the commercial space. Depending on your own business situation, it can be very advantageous to buy the work site that you can grow into the prospering entity that you have envisioned.