Why Owning Commercial Real Estate and Businesses Together Makes Good Financial Sense
Leasing vs buying is highly important when it comes to long-term financial health. Here are some reasons why M8TRIX5 Group acquired a mixed-use commercial space.
There are Benefits to Buying
You're paying yourself instead of paying rent: It can be expensive to maintain and run a business — understandably, owners are always looking for ways to deduct their taxes as much as they can. It's important to remember that the principal portion is paying yourself. While if you're renting, you would be paying the landlord for two things. One being their short-term costs and the other is their mortgage.
Leveraging power: Building worth is great but you can also leverage the same asset to borrow down the road. Let's say your there for five years and you would like to renovate your existing business. You will have the equity to be able to leverage against borrowing from the bank to do the renovations.
Diversifying: Owing the commercial space means you have two businesses. For most they only have an operating business, but you can have a real estate business also. If you choose to close your operating business for one reason or another, you will still have the real estate business with you. Owing the commercial space makes you the landlord and be able to rent it out. This way you're diversifying by turning one source of income into two for yourself.
For M8TRIX5 Group The commercial space will house a Learning Circle Campus www.thelearningcircle.ca and upstairs residential(s) will be rented out. The Learning Circle along with www.m8trix5.ca/ece-capital have plans to open up 4 new campuses in the fall of 2021. If you would like to learn more and participate in this growth feel free to reach out to us.
If you have questions or need help contact Dan Nou at https://www.m8trix5.ca/businessconsultingcoachingvancouver
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