Have You Done the Math?
Why buying your own commercial building may be the smartest thing you ever do.
For Those Of You Keeping Score…
The business owner that purchased a 2,000 SF office condo gets $29,220 PER YEAR in additional benefits by owning instead of leasing. That’s $9,000 in principle pay down, $4,320 in tax savings from deductible loan interest, $2,400 in tax savings from deductible building depreciation, and $13,500 in estimated asset appreciation. Remember this is based on an investment that only required a $45,000 down payment (10% down SBA Loan). Your Uncle Harold may have some killer stock picks, but I doubt they can provide that kind of return.
I hope this article convinces you to do the math for your business. If you don’t have the time to run the numbers, we can do the analysis for you for free. Contact us at 916-287-7439 or CarlsenOConnell.com and we’d be happy to help. Feel free to call us anytime with questions about buying a commercial building, renting office space, or life in general. We definitely know a lot about the first two.