Thinking of Buying or Leasing For Your New Business...Thoughts to Consider
[COLOR=blue][B]To Lease or Buy- That is the Question[/B][/COLOR]
[COLOR=blue]Given the current economic climate many small business owners are wrestling with the decision to buy property and take advantage of historically low interest rates and lower property values or to continue to lease. If you ask a real estate professional most will tell you the decision to lease or buy depends on many factors. There is no really no definitive rule but decisions based on an individual’s particular situation. Below are some of the plusses and minuses to both a purchase decision and a lease decision.[/COLOR]
[COLOR=blue][B]The advantages to leasing your business property are:[/B][/COLOR]
[COLOR=blue][B]Less Upfront Cost. [/B]Most leases require one to two month rent up front verses 20- 25% down on a typical commercial mortgage, a blessing to a new or cash strapped business. In addition, in today’s economic climate, commercial mortgages may be difficult for new or unproven businesses to procure.[/COLOR]
[COLOR=blue][/COLOR]
[COLOR=blue][B]Flexibility. [/B]Leasingallows a business owner the flexibility to easily relocate or sublet if their business plan calls for it. Additionally there is no need to sell property if your business needs a new location. [/COLOR]
[COLOR=blue] [B]Tax Deductible. [/B]Monthly rent payments are tax deductible as a business expense. [/COLOR]
[COLOR=blue][B]No Mortgage[/B].No mortgage payment allows a business to invest its capital in its core business, not in property. [/COLOR]
[COLOR=blue][B]Power to Negotiate.[/B] In this current market Tenants may have more negotiating power with Landlord eager to fill vacancies. Tenants may be able to negotiate better lease rates, terms, dollars for tenant upfit or remodeling costs and in some markets they can even negotiate free rent[/COLOR]
[COLOR=blue][B]Focus on Core Business.[/B] Property owner are exposed to legal and regulatory issues not experienced by Tenants. In addition, owners are required to invest time and energy in managing the property. As a tenant, legal, regulatory and other management issues are the responsibility of the owner, thereby allowing the tenant to focus on their core business[/COLOR]
[COLOR=blue][B]The Advantages to Buying a Property are:[/B][/COLOR]
[COLOR=blue][B]Tax Deductions.[/B] Annual Mortgage interest istax deductible and the property can be depreciated, thereby lowering annual business operating expenses[/COLOR]
[COLOR=blue][B]Flexibility. [/B]Owning your property gives you the flexibility to customize the property for your business needs. You can purchase a property with excess space to allow for future growth, preventing costly moves. [/COLOR]
[COLOR=blue][B]No need to Negotiate.[/B] Under a lease, you may be subject to annual increases in the rental rate. Additionally property owners may pass though increases in the cost of services over which you as a tenant have no control over. As a property owner you can control or at least carefully monitor the cost of services for the property. Term is also left up to your discretion, not to the discretion of your landlord. The decision to move to another location will be your decision and not the decision of a landlord.[/COLOR]
[COLOR=blue][B]Property Appreciation.[/B] Owners can participate in upside Potential or appreciation in a property. From 2001 – 2007, commercial property in the United States appreciated over 60%. [/COLOR]
[COLOR=blue]The decision to Lease or Buy a property can be a complicated decision. The first step should always be to consult a qualified commercial real estate expert in your area. With their help and expertise, you can find the perfect property in the right location at the right price. [/COLOR]
[COLOR=#0000ff]Lisa Safford[/COLOR]
[COLOR=#0000ff]Summit Commercial Properties, [/COLOR]
[COLOR=#0000ff][URL="http://www.SummitCommercialProperties.com"]www.SummitCommercialProperties.com[/COLOR][/URL]
[COLOR=#0000ff](843) 884-7773[/COLOR]
[COLOR=blue]Given the current economic climate many small business owners are wrestling with the decision to buy property and take advantage of historically low interest rates and lower property values or to continue to lease. If you ask a real estate professional most will tell you the decision to lease or buy depends on many factors. There is no really no definitive rule but decisions based on an individual’s particular situation. Below are some of the plusses and minuses to both a purchase decision and a lease decision.[/COLOR]
[COLOR=blue][B]The advantages to leasing your business property are:[/B][/COLOR]
[COLOR=blue][B]Less Upfront Cost. [/B]Most leases require one to two month rent up front verses 20- 25% down on a typical commercial mortgage, a blessing to a new or cash strapped business. In addition, in today’s economic climate, commercial mortgages may be difficult for new or unproven businesses to procure.[/COLOR]
[COLOR=blue][/COLOR]
[COLOR=blue][B]Flexibility. [/B]Leasingallows a business owner the flexibility to easily relocate or sublet if their business plan calls for it. Additionally there is no need to sell property if your business needs a new location. [/COLOR]
[COLOR=blue] [B]Tax Deductible. [/B]Monthly rent payments are tax deductible as a business expense. [/COLOR]
[COLOR=blue][B]No Mortgage[/B].No mortgage payment allows a business to invest its capital in its core business, not in property. [/COLOR]
[COLOR=blue][B]Power to Negotiate.[/B] In this current market Tenants may have more negotiating power with Landlord eager to fill vacancies. Tenants may be able to negotiate better lease rates, terms, dollars for tenant upfit or remodeling costs and in some markets they can even negotiate free rent[/COLOR]
[COLOR=blue][B]Focus on Core Business.[/B] Property owner are exposed to legal and regulatory issues not experienced by Tenants. In addition, owners are required to invest time and energy in managing the property. As a tenant, legal, regulatory and other management issues are the responsibility of the owner, thereby allowing the tenant to focus on their core business[/COLOR]
[COLOR=blue][B]The Advantages to Buying a Property are:[/B][/COLOR]
[COLOR=blue][B]Tax Deductions.[/B] Annual Mortgage interest istax deductible and the property can be depreciated, thereby lowering annual business operating expenses[/COLOR]
[COLOR=blue][B]Flexibility. [/B]Owning your property gives you the flexibility to customize the property for your business needs. You can purchase a property with excess space to allow for future growth, preventing costly moves. [/COLOR]
[COLOR=blue][B]No need to Negotiate.[/B] Under a lease, you may be subject to annual increases in the rental rate. Additionally property owners may pass though increases in the cost of services over which you as a tenant have no control over. As a property owner you can control or at least carefully monitor the cost of services for the property. Term is also left up to your discretion, not to the discretion of your landlord. The decision to move to another location will be your decision and not the decision of a landlord.[/COLOR]
[COLOR=blue][B]Property Appreciation.[/B] Owners can participate in upside Potential or appreciation in a property. From 2001 – 2007, commercial property in the United States appreciated over 60%. [/COLOR]
[COLOR=blue]The decision to Lease or Buy a property can be a complicated decision. The first step should always be to consult a qualified commercial real estate expert in your area. With their help and expertise, you can find the perfect property in the right location at the right price. [/COLOR]
[COLOR=#0000ff]Lisa Safford[/COLOR]
[COLOR=#0000ff]Summit Commercial Properties, [/COLOR]
[COLOR=#0000ff][URL="http://www.SummitCommercialProperties.com"]www.SummitCommercialProperties.com[/COLOR][/URL]
[COLOR=#0000ff](843) 884-7773[/COLOR]
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