Business owners can gain great benefits from owning the premises that they operate their business from; provided the finance is correctly structured. We are proud to be Australia’s Business finance specialist especially when it comes to purchasing a premises to operate your business from.
Why would you want to buy your own premises?
There are many benefits to owning your own premises as there are also some points to be aware of:
- Australians have a strong affinity to owning property. Owning real estate can be a good investment for your business especially in times of low interest rates;
- Any improvements to the premises can add value to the value of the property and your investment;
- The Australia Tax Office offers tax deductions for the expenses of buying and owing the premises including the borrowing and interest costs for any loan used for the purchase;
- You will gain increased security and freedom of running your business from your own premises;
Some things to keep in mind:
- Any decision to purchase your own premises versus leasing a premises should consider your current rental costs, your future potential to expand and requirement for a larger premises and the costs associated with owning your premises instead of leasing;
- You may need to contribute cash towards the purchase of the premises which can tie up necessary cash flow for the business that could be better invested. Banks and other lenders will generally lend up to 70% of the purchase price on commercial property.
- You should seek advice to ensure your finance is structured correctly as this can have positive or negative tax implications if done incorrectly;
- Purchasing a premises should be done in consideration with your specific business needs and future requirements.