A small business owner with a growing business can benefit from owning a commercial property. Thus if you have been leasing a property, now is the right time you decide of owning a commercial property. A well maintained commercial real estate increases in value over time. Following tips from Realtors in Corpus Christi Tx will help a small businessman in deciding whether it is beneficial to own a commercial property.
Building equity:
Purchasing commercial properties helps in building equity over time. Equity is the difference between the original value of the property and the amount you own to the lenders. If you purchase a commercial real estate by securing a loan, the down payment and monthly installments are your equity. And if the property is purchased by paying full cash your equity is built immediately. You also enjoy the option of refinancing. By taking a larger amount of loan you can convert the existing equity into cash. This cash can be further invested in improving your business.
Equity can also be built by investing in the stock market but investing in real estate is more advantageous.
Generating extra income:
Purchasing a commercial estate is beneficial to owners who plan to stay in business for a longer frame time. Leasing a commercial property compels you to pay monthly rent to your landlord for the period you intend to run your business. But as an owner, your liability reduces as you pay down the mortgage. And once your mortgage amount is paid off you can invest that amount in expanding your business. Even when your business is going through a difficult phase, you are not burdened with paying monthly rents. Also, an extra income can be generated by renting out the unused space of your property.
Supporting retirement:
As an owner of commercial property, you need not worry about the retirement plan. The good reason being that you can sell your business, but still retain the real estate and earn income by renting it. Also, if well maintained commercial properties appreciate over time. Renovations and additions of rental space also increase the value of the property. Thus you can sell your property at a valuable price and enjoy your retirement period.
Customizing facilities:
An owner is in full control of his business. In simple words as an owner, you have the freedom to design your own property as per your needs. Also, you can make improvements in the building as your business expands over time. Thus the building grows alongside your business, which can be effective for running your business. There is no restriction on placing of signage or landlords and zoning rules.
Benefits of taxation:
An owner enjoys many financial advantages which help’s in saving taxes. Interest on the mortgage loan and annual depreciation can be deducted from property taxes. This will ease your tax burden. Consult a property tax expert to find about more tax benefits.
Consistency in operation:
An owner can anticipate its monthly expenditure. There are no issues of increase in monthly rent as the mortgage rate is fixed for the long term. Cost of making an annual lease agreement after its expiry is also avoidable.
If you decide to purchase a commercial property the first step is to decide the financial budget. Don’t fear of arranging large amount. You can easily secure loan and insurance for owning a commercial estate rather than leasing.
Long term operation facility:
Leasing a property involves the headache of finding a new place of operation as soon as the lease period gets over. This reduces our clientele and affects the business turn over. In contrast, an owner can conveniently operate its business smoothly for a longer period of time. There is no issue of finding a new place every now and then and thus the clientele is long-lasting. This is especially true in the case of retailers who have established their business in a particular area with loyal and satisfied customers.
Conclusion:
If you have a long term business vision and you find the above points beneficial, owning a commercial property is a profitable investment in the long run. Get in touch with the trusted Real Estate companies in Corpus Christi who will guide you at every step in securing the best commercial property for investment.
