There are certain benefits in owning your own business property. Are they worth it to you?
When it comes to your business facility, consider purchasing a property instead of renting it. Owning a business property means a lot more responsibilities and expenses, but it’s a good way to build equity and increase the overall value of your business. You can weigh these benefits against the additional work and planning required and decide which is best for your current business. Read on to learn more!
More Control of Your Business Property
The most immediate benefit of owning your business facility is having control over the space where you’re conducting business. While renting a building or office, you have to comply with rules that are set by the landlord or company that maintains and owns it. These restrictions could inhibit how you design your business environment for your employees and customers. Owning property gives you a lot more freedom to manage, furnish, and change your business space as you see fit.
Lower Costs with Fixed Mortgages
Purchasing a commercial property is one of the biggest expenses associated with running your business. You can pay up to 40% of the cost up front for your down payment, and you should plan to have enough money for the first six months of mortgage payments available when you purchase. However, just like starting a business, buying commercial property is an investment that could create value as time passes. Overall, your building costs are more likely to be lower and more consistent than renting the property. Rental fees could fluctuate and drastically increase, making monthly expenses a lot more unpredictable. When you own property, monthly fees will consist of fixed mortgage payments or maintenance costs.
An Investment to Help Future Retirement
Unlike renting property, having ownership of a property will let you benefit as the building’s value appreciates. As time passes, your property will likely increase in value and could be worth more than the dollar amount you paid. The property’s value could be affected by external factors, like location, market conditions, and interest rates. If you’re financing the building with a loan, the down payment and monthly payments will contribute towards your equity. If you then decide to refinance or remarket the property, the equity will be the main difference between the property’s fair market value and the remaining loan balance.
Call Clagett Enterprises to learn more!
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.