Office condominiums can be quite appealing purchases due to a wide range of reasons. They are often available in good locations and in you can find them in several sizes suitable for most businesses. Office condos are usually centrally located near urban areas and offer a stable infrastructure and many different transportation options. If you are considering purchasing an office condo, here are 5 reasons that you should consider:
- Lower initial cash outlay: When you purchase an office condo, the down payment is usually quite low. A lower initial cash outlay enables you to have more money for increased marketing, staff and equipment.
- Higher cost stability: When you buy an office condo, the loan payments are typically fixed. You know how much that you need to pay each month to continue using the office. If you rent an office space, it may increase next year, which will affect your profitability.
- Added value: When you own an office condo, it will add value to your business. It will become one of the major assets of your business. If you plan to move to a bigger office space in the future, you can sell your current condo. It means that much of the funding for the new space is already covered.
- More control: When you rent an office condo, everything will be at the mercy of the landlord. The landlord may not agree to your requests for any modifications to the office condo. If you own an office condo, you can perform changes to fully accommodate the needs of your business. As an example, you can add partitions to divide office space or remove some non-structural light walls to enlarge your work space.
- Easier planning: If you own an office condo, it will be easier to plan ahead. You are able to project future costs and you will have a better understanding of the costs related to the ownership of the property. If you lease the office space, it will be more difficult to predict the future. Terminated contracts and various unforeseeable problems could become obstacles to your business plan and goals.
Owning an office condo is a good long-term investment. As you are paying down the mortgage, you are building a substantial equity for your business. You can take advantage of interest deductions and depreciation ensuring the sustainability of your business as well.
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