Are you currently renting space for your business? Stop paying someone else and start paying yourself. There are many benefits when you own your business building – check out this List of Benefits, but here are our 3 favorites:
3 Benefits When You Own Your Business Building
- Control – You get to control what you do with your space and when you do it. You no longer have to ask permission.
- Enhances Your Retirement – When you retire, you are most likely going to sell the business. At that time, you will have a choice – you can either sell the building as part of the business (which increases your sale price) or choose to rent it out to the new owner and have a steady flow of passive income.
- Tax Strategies – Owning your own building gives us one more piece to play with. If we have the ability to reduce your business income by paying a higher rent, you pay less social security and Medicare taxes. It gives us choices
When Not to Purchase Your Building
Buying real estate is a major commitment and it isn’t for everyone. A few reasons why we wouldn’t recommend buying a building:
- If you are uncertain of the direction of the business.
- If you don’t have the time to maintain the building. As business owners, we wear a lot of hats and this can be overwhelming.
- If you are anticipating needing a different type of space in the next 2 years.
Keep in mind – Real estate is a long term strategy, don’t be the business owner that has been renting for 15 years and then realizes they could have been in a better situation if they had purchased some time ago!
We know all of this can be confusing and stressful.
That’s why we’ve made it our mission to help you unravel it all.
From confusion to clarity, Accountabilities has you covered.