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Old 08-28-2007, 02:03 PM
guids guids is offline
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Default Advantages of owning vs leasing (commercial)

I need to figure out whether I want to lease rather than own some commercial property.

pros of leasing:

not locked in to a mortgage, if the business fails, I dont need to worry about selling it

nicer facilities most likely, in the short term, cheaper


Im "wasting" money


I own the property, and am investing a portion of our business rather than "wasting it"

can customize the facility

might be able to find a place with a residence, so I can live above my business

possibility of renting out unused space


more expensive in the short term, giving us less operating capital

I am not sure if I will buy the property myself, and "lease" it out to our company, if my partner and I will go in on the property together, or if my part of the investment will be paying the mortgage myself with savings, and not charging the business to lease it

should I go 50/50 w/ my business partner? what are the pitfalls? what kind of tax breaks am I looking at?
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