Are you considering purchasing an office or retail space for your business? There are definitely some pros and cons that you should weigh so that you can make the most educated decision possible. Blue Ridge Realty can walk you through the entire process so that you can decide if the time to purchase is right.
- Fixed Costs: Locking in an commercial real estate mortgage can give your business clear, fixed costs making it easier for you to plan and budget each month.
- Potential for Additional Income: Owning your office can give you the potential advantage of earning additional income to help pay the mortgage or even cover it completely by leasing out any additional office space you might have if you are not in need of all the office space that you purchase.
- Tax Deductions: The costs associated with owning and running a commercial space can provide some tax advantages in the form of mortgage interest deductions, property tax deductions among others. It’s always a good idea to consult your attorney or tax professional to see what type of tax breaks you might be entitled to if you’re purchasing commercial real estate.
- Retirement Savings: The appreciation of commercial real estate can potentially set you up quite nicely for retirement. If you plan on being in the space for 5-10 years, you may be able to sell your space when the time is right and fund your retirement.
- Up-front Cost: Buying commercial real estate will initially require more upfront costs than leasing. There are appraisal and maintenance cost, and you’ll have a down payment to consider and possibly initial property improvement costs.
- Lack of Flexibility: Unless your business is fully mature, you may need to have some flexibility to be able to scale up or down as your business grows. Owning your own space is probably best for those looking to invest for a longer term period so they can maximize the best return over time on their investment.
If you’re considering buying and want to know if the time is right, call us. We are happy to walk you through all you need to know. 865-470-4868