For most business owners this is the first decision that they have to face when opening up their business. Although the thought of borrowing money to buy commercial property can be intimidating, leasing the property also has it’s share of disadvantages. While in a lease, you won’t be building up equity like you would if you owned the property. However, you have the freedom to sublet or move if you need to at the end of the lease. Where if you owned the property you would have to find a buyer and property values may decline.

Some benefits of owning the property are that if you end up with excess space that you don’t need for your business, you could lease out the extra. Interest on the mortgage and annual depreciation are tax deductable. You can make all the changes that you want to the building to accomodate your business.

Benefits to leasing your property are you won’t have to come up with the initial down payment of a certain percentage of the mortgage up front. Your monthly rent is tax deductable. There would be no loss if the market goes down.

Even though the decision to buy or lease may seem overwhelming, the professionals at CENTURY 21 Alliance Realty are here to help and they know the market, inside and out. They can improve your chances of ending up with the perfect space at the right price.

One investment at a time. Decide which type of investment you will be focusing on, be it apartments, retail, land, etc. You need to be able to give your investment your undivided attention. If you invest your money in a multitude of properties, you may let things fall through the cracks. The idea of buying commercial property is to produce an income or profit, if your investment property does not do those things all you really did was acquire property.

Be sure to understand that over time, you will have to spend money on the upkeep of the building. Make sure you have a plan to handle and present and future repairs that your commercial property may need as well as any environmental responsibilities that come with your investment. Property owners have the responsibility for taking care of any hazardous waste issues. Cleanup and disposal. It’s not a bad idea to get an environmental report from assessment companies.

Once you have a found a property that suits your needs, value the property based on its condition, your return needs, and your borrowing power. As always, find an experienced Real Estate attorney to help walk you through the paperwork.