“Is it better to lease or to buy?”
The lease versus buy decision has been a hotly contested question amongst business owners, financial professionals, and real estate operators forever. There is really only one true answer to that question — It depends.
There are so many advantages to building ownership.
- Cash Flow
- Reduction in Debt
- Control of operating expenses
- Tax Advantages
However, I’ll be the first to tell you…
“There are some companies that should not buy their buildings.”
Until a business is stable enough to be able to forecast growth and potential retractions with some degree of certainty then ownership is probably not a great idea. I have seen the strategic plans of many businesses thwarted by owning a building that is too big or too small.
“Why then do stable businesses not buy their buildings?” — click to find out – Tenants to Owners