Why small business owners should buy their commercial properties.
While many business owners choose to rent their buildings, there are some compelling reasons for buying these properties. With the economy growing and interest rates at historic lows, now is a fantastic time to invest. Here’s why small business owners should buy their commercial properties.
- No More Rent
Small business owners understand that rent is one of their largest operating costs. By buying your commercial property, you will obviously eliminate the need to pay rent. By making this smart investment, you can stop lining your landlord’s pockets, start building wealth, and lower your overall facility costs.
- You Can Become a Landlord
The U.S. Business Administration offers a popular loan program specifically designed for owner-occupied real estate. However, many business owners do not realize that the program only stipulates that they occupy 51% of the building. This means that it’s possible to buy your building and rent out the 49% of it. By becoming a landlord, you can generate income that will offset the cost of your loan.
- Low-Interest Rates
As previously mentioned, commercial real estate loans currently have very low-interest rates. However, it’s important to remember that interest rates are prone to fluctuations, and it’s difficult to predict when rates will start increasing. If you have always considered buying a building, then you need to strike now so you can lock in these low-interest rates.
These are some of the reasons why small business owners should buy their commercial properties. Are you ready to invest in commercial real estate, but not sure where to start? Then contact the experts at California Commercial Realty Advisors, Inc. We are ready to assist you today.