For many small businesses, growth signifies the need for more space. You might require more office space for your growing team or more warehouse space for storage. Depending on your industry, it may also mean you’ve simply outgrown your location. Whatever your company might need, taking the next step often means the purchase of commercial real estate.
While it’s easy to jump to conclusions and assume your company can’t afford to invest in commercial real estate, ownership comes with a number of benefits. Here’s why you should consider making the move from tenant to owner:
Ownership as a Revenue Stream
Returns on commercial property investments typically range between six and 12 percent of the purchase price. You’re also locked into a fixed rate mortgage, which allows you to anticipate monthly expenditures without worrying about rent increases. Commercial real estate owners also have the option of renting out extra office space to offset their monthly mortgage costs. Trading in your rent check for an extra paycheck is always a good idea.
Increased Tax Benefits
Did you know property owners can deduct their property’s mortgage interest in full? There are additional tax benefits for those who make energy efficient upgrades to their spaces. When it’s time to sell, owners can do so at a large capital gain while deferring tax payment – as long as you use the proceeds to buy another property. If you keep buying property throughout your lifetime, you can avoid capital gains taxes altogether.
Investing for the Long Haul
Commercial property appreciates in value over time. Should you wish to expand your business, you’ll have the collateral you need. Take full advantage of your space, renovating and decorating as you so choose. Upgrades can help attract high value tenants and provide long-term financial stability.
If you have a vision for the future of your business, allow Insight Property Group to help make it a reality. Reach out to our team when you’re ready to make an investment – we’ll be happy to guide you through the next phase of your exciting enterprise.