WHAT YOU SHOULD KNOW BEFORE OWNING
Advantages of Owning
Pride and Control
-Ownership provides pride and control. You as an owner will have the freedom to operate and manage space as you see fit (within the limits of the law).
-You as the owner would be entitled to tax savings that would result from depreciation of the asset.
Potential of Appreciation
-The owner of an asset, a building in particular, is of course entitled to all of the appreciation in value too.
Disadvantages of Owning
Ability to Obtain Loan
-The ability to obtain a loan is dependable on a few things including the financing market and the company’s financial condition.
General Risks of Ownership
-The general risks of ownership such as a normal wear & tear overtime, potential damage, vacancy, and not being able to sell at your preferred price and timing (and perhaps due to a changing economy) in the future are important factors to consider also.
Large Initial Capital Outlay
-The required cash down to own your property could use up cash that may have otherwise been used to finance the firms operations.