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.

This entry was posted on Tuesday, July 1st, 2008 at 9:37 am and is filed under General, Commercial Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.