Does your business need room to expand? Have you outgrown the space you're leasing? If so, you might be ready to move to a new location. If you want to move your business, you will need to decide whether you rent or buy commercial space. While there are benefits of leasing space, here are four reasons you should consider buying commercial property instead of leasing it.
It Is an Investment
When you buy any property, you are purchasing an investment. Property often appreciates over time, and this is one way you can make money through this investment. Buying property is also an investment due to the way your equity grows in it as you pay it off. Every year, the amount of equity you have in the property increases. Eventually, you will own 100% of the property investment.
You Get More Freedom with How You Use It
Two, when you own property, you get the freedom to use it however you wish. You will not have a landlord who must approve changes or modifications. You will get to do whatever you want with the property. If you want to put an addition on the building, you can. If you want to renovate part of the building, you can. Having this freedom is something you will never find when you lease commercial space.
You Can Rent Out the Space You Don't Need
If you buy space that is larger than what your business needs, you can rent out the area you are not using. When you do this, you will see an increase in cash flow for your business. If you rent out space, you will have extra money coming in each month.
You'll Reap More Tax Benefits
There are more tax benefits available when you own property rather than when you lease space for your business. The tax benefits alone make buying commercial property worthwhile. These benefits can decrease your tax liability each year, which means that you will have more money in your pocket. It also means you will have more cash on hand to expand your business.
Does your business need more space to operate? If so, talk to a commercial real estate agent to find out what properties are for sale in your area. Your agent can take you to see these properties and will help you work out a fair deal to buy the one you want.