When it comes to commercial property for your business, there are two main options: lease or buy. While leasing may seem like the more affordable option, there are a number of benefits to owner-occupying a commercial property.
Here are some of the key benefits of owner-occupying a commercial property:
Control: When you own your own property, you have complete control over it. This includes the ability to make changes to the space, to choose your own sub or co-tenants, and to set your own rent.
Security: When you own your own property, you have more security. This is because you are not at risk of being evicted if your landlord decides to sell the property or if your lease expires.
Flexibility: When you own your own property, you have more flexibility. This is because you can use the space for any purpose that you want, and you can make changes to the space as needed.
Tax benefits: There are a number of tax benefits that are available to property owners. These benefits can help to offset the cost of ownership and can provide additional income.
Appreciation: Over time, the value of property can appreciate. This means that you could make a profit if you decide to sell the property in the future.
Of course, there are also some potential drawbacks to owner-occupying a commercial property. These include:
Higher upfront costs: Buying a commercial property requires a larger upfront investment than leasing a location. This is because you will need to pay for the purchase price of the property, as well as closing costs and any necessary repairs or renovations.
Higher maintenance costs: When you own your own property, you are responsible for all of the maintenance and repairs. This can be a significant expense, especially if the property is large or in need of repairs.
Less liquidity: It can be more difficult to sell a commercial property than it is to sell a leased location. This is because there is a smaller pool of potential buyers for commercial properties.
Overall, the decision of whether to owner-occupy or lease a commercial property depends on your individual circumstances and goals. If you are looking for control, security, flexibility, and tax benefits, then owner-occupying may be the right choice for you. However, if you are concerned about the higher upfront costs and maintenance expenses, then leasing may be a better option.
If you are considering buying a commercial property, it is important to work with a qualified commercial mortgage broker. A commercial mortgage broker can help you find the right loan for your needs and can negotiate the best possible terms.
Here are some additional tips for deciding whether to owner-occupy or lease a commercial property:
Consider your long-term goals: If you plan to stay in the same location for many years, then owner-occupying may be a better investment. However, if you are not sure how long you will be in the same location, then leasing may be a better option.
Do your research: Before you make a decision, it is important to do your research and understand the market. This includes understanding the demand for commercial space in the area, the supply of available properties, and the current rental rates.
Get professional advice: A qualified advisor can help you assess your situation and make the best decision for your business.
If you are ready to start your journey to owning your own commercial property, contact us today. When it comes to the financing options it pays to speak to the experts. By working with the CapStack team, you can avoid the hassles and headaches of dealing directly with lenders. We can handle the entire financing process for you, from reviewing your needs, analysing the best options, submitting your loan application to negotiating terms and closing the deal.
So why go it alone when you can have a trusted partner in your corner? By working with a commercial mortgage broker, you can save time, money, and headaches while also gaining access to a wider range of financing options and expert guidance through the process.
If you're in the market for a commercial property acquisition, contact us today to discuss your financing needs and learn how we can help you secure the best possible terms for your investment.
CapStack can assist with bank, non-bank, or private financing. Start here to connect with us and send through some basic information to get the ball rolling or email us directly. Our lenders are Australia-wide and ready to fund investments acquisitions and development projects. CapStack help's developers and investors fill their capital stack by providing access to the capital puzzle piece they are missing. CapStack works directly with developers and investors who need access to capital markets.
How can we help you with your finance needs or those of your clients? Give us a call or start here.
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