Buying Vs Leasing Commercial Properties

When you are looking to start a business or invest in an apartment complex, you want to find a commercial property that is going to suit your needs. Once you have determined what you need to make your dreams come true, you need to decide whether you want to buy or lease the property. There are lots of things that you want to keep in mind when you are making this decision.

Location

No matter what the type of commercial building you are looking for is, you need to consider its location. Does the area of a particular building have a rollercoaster of a neighborhood? Just because the neighborhood is trendy right now doesn’t mean that it will be in a couple of years. If you are worried that you could lose customers because a new shopping center is being built, maybe it’s better to lease a building rather than buy it.

Liquidity

No one likes to think about the possibility of their business failing but let’s be honest here, buying a commercial property for your business ties up a lot of your liquidity. What happens when you need money and all of it is tied up in your real estate? Yes, you could sell the property but the real estate market isn’t always good.

Cash Flow

The biggest reason to have a business is to make money but when you own the property, sometimes very expensive repairs are needed which can suck up your savings. The same rings true if you own an apartment complex. Tenants can stop paying rent or cause damage inside the apartment.

When it comes down to it, economics plays the biggest role in whether you buy or lease a commercial property. If you need help deciding what to do, call North Bay Property Advisors today.

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