Advantages Of Owning Commercial Property In Mohali

Most business owners today eventually encounter the dilemma of either selling or leasing their office property. Before making this decision, there are several factors that one must consider. For instance, in the case of a dental practitioner leasing is the best option since it would keep up with the uncertainty of future space needs, and also maximize cash flow. However, in the case of business owners who have a strong fiscal profile, a vision for growth, and the advantage of tax benefits from ownership, a purchase of commercial property can establish a good foundation for a successful business. Here are some other benefits of owning a commercial property in Mohali:

Extremely Low Prices

The prices of commercial properties are now much lower than ever before. In fact, the price drop since the recession has made purchasing and owning a commercial property much cheaper and easier than renting or leasing it. While it isn’t likely that property prices will rise at astonishing rates like they did in the early 2000s, the prices of both residential as well as commercial real estate are expected to be appreciated. This will also ensure that the property owner receives the benefits of that appreciation as well.

Favorable Interest Rates

Interest rates today are extremely favorable for business owners. The mortgage and property loan prices are well integrated with the decline in property rates to ensure that you save funds while purchasing your commercial property in Mohali and also while paying back the loan amount. While obtaining the financial support is still quite a lengthy process and requires a spotless fiscal profile with a sturdy business plan to implement, it is still worth the effort because of the attractive rates.

Equity Appreciation

As you begin to own equity in real estate, it is bound to appreciate in value and give you more than your money’s worth in the long run. You can also use this as leverage when you plan to grow your business further and increase its scale. This helps you get a higher range of flexibility in managing your business growth. Moreover, it can also give you an additional advantage when you are about to retire. As the owner of the commercial property, you can sell both the office space and the underlying property when you wish to retire, or just sell the office and lease the property for a steady income stream.

Cash Flow

One of the major advantages of a commercial property in Mohali is that you can rent it out for a steady cash stream. You should ensure that the property has space for tenants, and also remember that this would place additional property management responsibilities on you. This may give you less time to focus on your core business; however it can be managed with some steady time management. Moreover, you can use the income you get from the tenants to pay off the property purchase loan.

Tax Benefits

Owning your own office space allows you to depreciate the value of your commercial asset while also writing off all the loan interest paid during that year. There are several tax benefits you can receive on owning your commercial property. These are:

• Cost Segregation – This method allows you to depreciate the building’s state and components such as lighting, wiring, etc. for up to a 39-year period. This allows you to write off the cost of maintenance for the building and save a significant amount of money.

• 1031 Exchange – Properties that are made for investment in a business or trade can be sold completely while applying the funds towards purchasing a similar property within 180-days of sale. The condition that applies here is that the purchased building must have an equal or higher cost in order to save you from the tax penalty. This also provides you leverage to move your business into a larger property as it begins to grow without being obstructed by the thought of tax penalties.

Ownership Benefits

The main benefits of owning your own business space is that it gives you ownership rights. This means that you can change it however it may suit you or your business without the need to worry about the landlord or the lessee of the property. This can be a major benefit as your business grows as it also allows you to remodel the building as you see fit and make it more appealing to your customers.

The above benefits should be enough reason to purchase and own your own commercial property in Mohali. Be sure to consult with your financial advisor before making the purchase.