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  • Writer's pictureMichael Clarke

Benefits of Owning Your Business Premises

We don't have to pay too much attention to both major sides of Australian politics today to realise that we are facing some economic headwinds with slow growth, low inflation, static wages and relatively high underemployment. If nothing else this should cause a jolt in your reassessment of both financial sides of your business - income and expenditure. An area where you may very well be able to minimise or reduce your fixed costs is that of your commercial lending facilities or your current rental outgoing. It's a prime time to assess this and here are the benefits:-

1. Security of tenure . No future worry centred around stability of your business location.

2. Cost of debt can be significantly lower than your rental expense.

3. Timing - Current economic forecast may see your landlord looking to sell which can benefit you in negotiations

4. Asset growth - Building your own asset base.

5. Increased equity - A form of forced savings as you increase the equity in the business property.

6. Capital Growth - Provides for increased future sale value of the business which can now include the building asset.

7. Tax Advantages - Can be more tax effective. eg. Depreciation on building & improvements can be claimed. Not just plant & equipment etc.

8. Reduce dead money - Rental of premises can be seen as ‘dead money’ .

9. Full control - over renovations & improvements, now and in the future.

10. Increase in capital - Property can be used to gain access to additional low-cost business capital.

11. Simpler & easier - Removes landlord / tenant relationship issues.

Testimonial :-

“Owning our own premises has given us greater confidence in Dales Office Furniture’s future. It has given us the ability to control the timing of renovations and improvements and is a sound wealth strategy for the both of us.

Thank you Michael Clarke and Belinda Hargreaves for all your work making this happen”

-Claire Jestrimski

A great opportunity exists here . You should also consider reviewing current commercial loans that are in place with lenders to take advantage of significant interest savings, so what are you waiting for !

If your wanting to find out more, contact us via this web site or call Michael today

0400 030 556.


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