Renting vs. Owning Commercial Property: Which is right for you?

As much as leasing is a great way to start a business when you have low capital, don’t hesitate to talk to the experts at our company. Let’s see if ownership could be the smarter move for your future.

 

Rent continues to rise and with each payment you are helping someone else build wealth.

Why don't you invest the same amount of money on something that belongs to you?

How does ownership Increase value overtime?

In short-term, renting could seem easier, but there is no return.

Having your own business includes:-

  1. Increase equity with each payment.
  2. Defending yourself against growing rental cost.
  3. Obtaining tax benefits such as mortgage intrest deductions and depreciation.
  4. No more landlord restrictions or surprise rent hikes.

Over the years, your property could increase in Value, giving you a long term investment.

Spending alot? - Make it count.

$5000/month in rent = $60,000/year = $3000,000 in 5 years with nothing to show.

Put that same payment towards a mortgage, and you'll be investing in your own business asset.

You can own a business more easily than you think!

Here's how to get started:

  • Get pre-approved for financing (typically 25% down required)
  • Budget for legal fees, GST, and Inspection costs.
  • Understand monthly cost: Mortage, taxes, condo fees, utility and maintenance.

When structured properly, monthly ownership costs can be very close to rent but with ownership, that money is working for you.

Planning to buy as an investor?

If you're looking to lease out the commercial unit for income,

Things to consider:

  • Cap Rate: A measure of the potential rate of return on your investment. (Net Operating Income / Purchase price)
  • Cash Flow: The money you have left over after paying all expenses. (Rent - Expenses)
  • Tenant Deman: How easy will it be to find tenants if you decide to rent out part of the property?

 

Ownership = Control

  • No more worrying about your landlord raising the rent or kicking you out at the renewal time.
  • You can renovate or reorganize your space to suit your brand.
  • You build an asset that appreciates and add stability to your business.

Let's be honest

If you have the abiltiy to qualify and put 25% down, there is no long-term benefit to continuing to rent. You're growing someone else's portfolio instead of your own.

 

So ask yourself again

Why do you want to rent, when you can own?

Let's match you with a unit that fits your business and your future goals.