4 Advantages of Owning Your Business Property Instead Of Leasing

Commercial Lending Texas
Commercial Lending Texas

Leasing your company's office or manufacturing facilities may work well for you right now. However, any entrepreneur heading up a healthy, growing business should seriously consider the many advantages of owning your own real estate.

Generate Rental Income Now:

Businessowners who form LLCs to purchase property may be able to generate income from the building sooner than they think. Depending on the type of business, the building's zoning, and the loan restrictions attached to their mortgage, entrepreneurs may be able to rent out parts of their industrial facilities or office buildings to tenants, thus funding their monthly mortgage expenses.

Lower Costs with Fixed Mortgage Payments:

When you buy a building, you can avoid annual lease rate increases by fixing your monthly mortgage payment for a decade or longer. This will hold down costs by protecting your business against rising lease rates. You'll have to make down payment upfront, but you may end up paying less per month than you would if you were renting space.

Leverage Tax Advantages such as Depreciation & Interest Deductions:

While businesses can deduct rent payments from their taxes, owning a property also has tax advantages. For example, you can depreciate the building's value, which lowers your taxable income and write off your mortgage interest payments. It's worth consulting a tax expert to see if ownership makes more financial sense for you than renting.

Use as an Investment to Support Retirement:

If you are an entrepreneur with a long time frame for your business, paying off your commercial mortgage through the revenue generated by future tenants could be an effective retirement strategy. Real estate trends tend to run in cycles that favor long-term owners.

For reliable Commercial in Lending Texas, you can always count on Commercial Loans Of Texas. We are happy to offer you a commercial real estate loan based on the value of your Texas property. Contact us now for prompt and responsive Texas commercial lending solutions.

Location: Magnolia, TX, USA

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