Is It Time to Stop Leasing?
Many business owners lease the space they need to operate their business. Typically, leasing property is more attractive when starting a business, since it requires less money from the outset. Over time, however, as your business grows, needs may change and purchasing commercial property may be more beneficial.
Owners of commercial investment properties are in the business to make a profit. That profit is included in your monthly lease payment. With interest rates on commercial mortgages still at historic lows, your monthly mortgage payment could be less than your current lease payment. If the space allows, you could possibly take on a tenant and start making income on your property.
There are also tax benefits associated with owning your own commercial property. As with a mortgage on your home, interest paid on a commercial mortgage is tax deductible. In addition to the interest deductions, you may be able to deduct repairs and maintenance made to the property, as well. In the event that the property should depreciate in value, a depreciation deduction may be made.
Of course, when purchasing property, we are more interested in an appreciation of value. Owning that property means that the equity earned from physical or market improvements is yours. That equity would be yours to use as needed to grow your business or profit from when you sell it.
At Evergreen Equity Partners, LLC, we offer access to a variety of mortgage products that could be customized to suit your needs and make owning your commercial property a reality. Contact us today to find out how we can help.