Advantages of Owning Versus Leasing Commercial Property

Before renewing the lease on your office space, have you considered the advantages of owning your business property? It can have a significant impact on your business. There are many benefits to owning office space. Owning offers control, consistency, and financial advantages that leasing cannot provide.

1. Owning gives you control.

With new construction, you have the freedom to design the building to suit your business needs, instead of conforming to existing floor plans. You can make improvements as they become necessary and the building can grow alongside your business.

Purchasing or constructing a stand-alone building allows you to change the appearance of the property to maximize your visibility, and place signage where it will serve as an effective marketing tool.

2. Owning saves you money.

There are financial advantages with ownership including tax savings and building equity. The interest on the mortgage loan is tax deductible and you can take annual depreciation deductions on property taxes.

Equity is the difference between what your property is worth and what you owe to lenders. There are two ways you can build equity. You can pay down the mortgage, which decreases the amount you owe lenders, or your property value can appreciate, which increases what your property is worth.

In many cases, mortgage payments are often less than rent amounts when leasing a comparable office space. This not only saves you money in the long run, but also frees up more of your available cash each month. Paying a mortgage instead of rent lets your money continue to work for you instead of your landlord.

3. Owning brings consistency.

With a long-term fixed-rate mortgage, you can anticipate your monthly expenditures. There are no annual rent increases to worry about. You also avoid a costly move when your lease expires, or when you outgrow your leased space.

4. Owning is possible.

Don't let fears of large down payments or end of term balloon payments keep you from purchasing your business property. Community Business Finance can show you how property ownership is a real possibility.

We offer SBA 504 loans with fixed-rate, below market interest rates. These 20-year loans are fully amortized, with only a 10% down payment needed. With an SBA 504 loan, you will also avoid the restrictive covenants and balloon payments often found in conventional loans.

The combination of a low down payment and below market interest rates leave you more working capital available to grow your business.

Contact Community Business Finance today and let us help your business enjoy the control, consistency and financial advantages of property ownership.

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