Benefits of Owning Your Business Property Over Leasing
While leasing an office or retail store may seem like the most feasible option in the premium retail market in Mohali, it is always a good idea to check if you can buy the commercial property for yourself. As an entrepreneur who is planning to grow on a large scale, you should consider the possibility of letting go of the liability of leasing or paying rent, and instead turning your business property into an asset. If you aren’t so sure if this would be the right decision for you just yet, here are a few reasons why owning your business property is great:
#1. Retirement Guarantee
Even if you don’t plan to expand your business, you can always use your business property as a secure way to retire in the future. When you do plan to exit the market and live a peaceful life, you can start to rent out the property to other business owners for a regular source of income. Commercial properties get a lot more rent that residential ones do and the prices are only bound to increase with the flow of time.
#2. Less Liability
While paying a mortgage for the initial few years of purchasing the property can set you back and it can be considered a liability, it ends up being a lot less than the rent you will have to pay on a monthly basis. The difference in costs is quite significant and can help you quite a lot in enhancing your financial stability during the establishment period of your business. Also, paying rent through the life of your business can end up being quite expensive as well.
#3. Customize the Facility
While some renters allow tenants to customize their business property, most would not let you make complete customizations. It is always better to own the property if you wish to remodel the space for branding reasons since the freedom to do so can be quite liberating. You can also construct additional stories on the property, which will allow you to expand your workable area even more.
#4. Tax Advantages
It’s not secret that owning commercial property entitles you to some very special tax benefits. While this is also possible in the case of leasing the business, you may not be able to get the full benefits such as lowering of the taxable income in case the property depreciates in value, along with a mortgage interest deduction. You can consult your tax advisor for more information regarding the same.
#5. Get Rent Now
You don’t really have to wait until retirement to start getting rent. This is because the way your property is structured can allow you to rent out a part of the property to another business. This can allow you to cover the mortgage payments with the rent and continue to make profits with your main business. This also works for entrepreneurs who prefer working from home.
The above benefits should prove it well enough that owning your business property is a sound investment idea. This works especially well if you buy your property near one of the premium retail markets in Mohali.