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 the 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 normal wear & tear over time, 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.