OWN YOUR LOCATION
Pros of Owning Your Own Business Location
Small business owners who are;
- looking for a way to build generational wealth
- tired of paying rent
- have an upcoming lease renewal
There’s an alternative to renting – BUYING a commercial real estate building, and there is more than one option for the types of loans you may qualify.
Business owners can begin paying themselves and investing in their own future. instead of writing a check to a landlord every month. Most often your monthly payment on a building you own will be the same or less than the cost to lease.
Building ownership is advantageous for most established business owners. They usually reap increased business activity, while benefiting from a significant return on investment with every monthly payment. So, the decision to own is beneficial as both a real estate decision and a business decision.
Do you plan to remain in your space for at least seven years? This is oftentimes the break-even point for purchasing versus leasing your business space.
There are many reasons to own a commercial building, but these are our Top 6:
- Building equity: Your down payment and every monthly payment made is an investment in you, the business owner’s future. You can leverage that accumulated equity for future business growth or towards new options when it comes time to sell the building or retire.
- Capital appreciation: Owning an asset like commercial real estate gives you the opportunity to benefit from capital appreciation- the increase in your property’s value over time. In today’s market throughout Raleigh, NC, and surrounding suburbs this can mean significant gains.
- Tax breaks: You can deduct interest, depreciation, and nonmortgage-related expenses on your commercial property. For example, if you fall in the 20% tax bracket, you’ll reduce your tax bill by 20 cents for each dollar deducted!
- Control: When you own property, you have control over it, which means you don’t have to negotiate with a landlord if you want to reconfigure the space. Plus, rent increases no longer apply. Your monthly payment will always be the same.
- Rental INCOME: If you have extra space in your commercial property, you have the option to rent it out to tenants and create a secondary income stream. Small-sized office and retail space are in high demand!
- Preserve cash: in many cases, the monthly payment to own is less than what you’d pay in rent. Small business owners can use the retained “working capital” to buy inventory, hire new employees, purchases equipment or invest in other strategies to grow or improve the business.
1776 Heritage Center Drive, Suites 202-204
Wake Forest, NC 27587
Phone: (610) 295-3699