There are pros and cons when it comes to owning your office space. This may be the right solution for your business if you require a little bit more stability. Here are some of the top benefits when it comes to owning your office space.
Equity to Borrow Against
Making a purchase does require that you have the ability to make a down payment. With this expense, you also have the option to build up some equity. If you have enough equity built up, you can borrow against it for other expenses. This may be the help that you need to launch a new product line. It also gives you a little bit of flexibility if you want to sell your business someday. All of those savings can equate to you having a nest egg for your retirement.
Ability to Budget Expenditures
Fixed Monthly Costs is something that would benefit most businesses. You wouldn’t have to worry about how you were going to come up with additional money for rent increases. This could allow you to better manage your business from year to year. You would know exactly how much money things were going to cost. This would help you to budget for larger ongoing projects. You also wouldn’t have to worry about receiving an unexpected eviction notice.
Opportunity for Additional Income
Owning your own building could allow you the opportunity to sublet a portion of it. This could help you to generate some much needed income month over month. It would also give you the ability to control your neighbors and their usage of the property. If you needed additional space in the future, you could have the opportunity to expand without having to relocate. On the reverse side, if you wanted to downsize, you could lease out more of your building.
There are lots of opportunities for you to write off the building expenses on your taxes. These generally come in the form of deducting your interest, taxes, and building depreciation costs. This could help you to receive a tax return instead of making a tax payment each year. It may be in your best interests to build your own building instead of trying to use an existing one. Look into getting a construction loan through a bank like LCNB National Bank to help you with this endeavor.
There are a great number of benefits when it comes to owning your office space. Consider these benefits when deciding if this is the right decision for your business.