In a nutshell, there is no one-size-fits-all answer! It is important that businesses do their own
research into which move would be the best choice.
Leasing/renting allows for a more nimble business to see whether or not a location is working
for them. If not once their lease runs out, they are free to find somewhere else to do business.
They don’t need to worry about having to sell the building or other issues that may arise if they
were landlords of the building. Of course, some may see renting as wasting money as
purchasing the property would allow one to pay down the mortgage or take advantage of tax
benefits and enjoy market appreciation. Also for renters, once the lease runs out, it is up to the
owner whether they will allow you to stay or whether they choose to raise prices; which could
put you in a pickle if you are unprepared for it.
Buying has its advantages and disadvantages as well. An owner would also stand to benefit
from the appreciation the building may have accrue. You get to build equity with your monthly
payments instead of building equity for the owner of the property if you were leasing. You also
run the possibility of perhaps renting out parts of the building if you choose to downsize or if it
becomes more profitable to rent than for you to use to the space. However, a lot of responsibility comes with ownership: you are on the hook for maintenance; if you have tenants, they’ll look to you to solve their problems; there can be fluctuations in the value of your property as the market changes (this could be good or bad); it can have a very large upfront cost which could be used better to further your business; and so on.
In either case, it is crucial to have a professional and expert team to help you with your
commercial endeavors: from the broker or sales representative, to the lawyer, to the accountant, to the commercial mortgage broker.
By: Aziz Amiri
We could all agree that it wouldn’t be stretches to say that much of the riches the wealthy have gained have come from Real Estate. One may ask, “How?” The answer is, in many different ways! Real Estate offers tens of different types and kinds of investment opportunities that, if you go about it in the smart and informed way, could be a great boon to your wealth and portfolio. The real question becomes, “What is the right opportunity for me?” For the best possible outcome, when it comes to investment, the investment opportunity should nurture and harness one’s strengths, talents, and align to his/her lifestyle; this is the winning formula. An endeavor where you should take stock of your likes, dislikes, talents, strengths, weaknesses, propensities, and then align them with your investment goals and objectives, and the varied
ways to reach them.
Some investment options are single homes with basements, student housing, flipping and
renovations, plazas, office buildings, industrial properties, retail condos, multifamily, land
banking, and so on. Your personal inventory could be people skills, being good with hands
(which would come in handy with renovation and flipping), analytical skills, skill in dealing with
students, tenants, lawyers, planners, architects, contractors and so on.
By: Aziz Amiri
Rumi Realty Point
Resources on Canadian Real Estate Market, Buying, Selling and Investment.