Is this the time to buy a commercial building?
Still leasing? Consider the benefits and discover if you should buy a commercial property instead!
TAX SAVINGS
- Write off all of your mortgage interest.
- Depreciate the commercial building and equipment.
- Property income is ordinary vs. earned income.
INCREASE PERSONAL INCOME
- Reduce your earned income by the amount of your commercial building income. This will lower your personal income tax burden.
- Hire family members to (legitimately) manage the property.
BUILD EQUITY AND WEALTH
- Increase your equity ownership as a result of principal reduction (paid for by your company's rental payments)
- Depending on your space needs you may be able to lease part of your building to other tenants who will help pay for your commercial building.
APPRECIATION
- Potential increase in the value of the property over time due to inflation or property improvements.
- Changes in supply and demand in the real estate market may increase the value of the property.
CONTROL LEASE EXPENSE
- With a long-term mortgage and control over commercial building expenses, as the owner you can better control your business's lease expense vs. traditional leasing.
ADD VALUE FOR FUTURE SALE
- When you sell the property, you owe less on the loan, so you receive more cash at closing.
- If you sell your business in the future, you have an additional asset to increase the overall value of the business.
HISTORICALLY LOW INTEREST RATES
- Mortgage interest rates are still historically low and consequently the decision to purchase a commercial building should be now.
- Build equity more quickly than in the past.
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About
Why choose to work with Republic Realty Advisors?
Save Time, Save Money, and Improve Your Bottom Line.
We focus on Buyer Representation, Tenant Representation, Commercial Investment Opportunities, and Landlord Representation for Office, Flex and Retail.
Republic Realty Advisors provides Investment Real Estate Knowledge and Experience, Market Expertise, Comparable Building Analysis, and Local Market Conditions expertise.
