In my previous blog, I had mentioned how as an entrepreneur who is running a business and looking for a stately home, the time has come when you will have to make a decision whether to buy or to lease a house for sale in Frisco. This is the right time of the year where you can make a decision and you must know that it is much easier to plan for a car or a vacation or for education. But you must decide which property type suits you the best as it gives forward many challenges.
We saw some pros and cons that you must consider when you are buying to help you make a choice. In this article, I will cover the pros and cons of leasing and how after reading this article you will know which is best.
Coming to the Pros of leasing here are following points
• Location: Leasing will allow you to occupy the space at a prime or a very strategic location which will otherwise be quite unaffordable for you to buy.
• Liquidity and cash reserves: When you lease a property it will be needing very less cash input that what you will be purchasing. This will enable you to have the more free capital to invest elsewhere when you are operating your business.
• Flexibility: This is one thing that everyone swears by. A lease will have an expiration date which will be giving you a timeline to forecast as well as re-evaluate all your property needs. You can plan much ahead if you see a change in the needs of the contractor when you want to relocate or expand.
• Tax Benefits: When you want to lease the occupancy costs will be fully deductible and this will be shielding your operating income from the federal, state as well as local income taxes.
We will not talk about some of the cons of leasing
• Having a limited control: You will be having very less or no say when the owner decided to do with the property. When there is forced business relocation then it will cause disruption thus leading to the loss of goodwill.
• Contractual Obligations: In case the leased property becomes unsuitable or your business is unprofitable you will still have to pay the rent. You will also be subject to annual rent increments.
• Loss of any salvage value: When it comes to some lease agreements there are many improvements that can be made by the tenant will ultimately become the property of the landlord once the end of the lease approaches.
• Expensive: An established business will have easy access to the capital will be finding it much easier to lease a more expensive alternative to ownership.
We have come to the end of the article and before you decide to buy or to lease frisco homes for sale
or commercial property make sure you do a thorough analysis of all the options. This will be helping you to determine what will be working best for your businesses. Once you have made your decision then you can request a frisco real estate agent or a real estate professional to assist you to confirm the commercial aspects as well with respect to the contract and the lease thus making it favorable to you.