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One major reason to buy a commercial property

One of the big decisions that business owners need to make is whether or not they want to buy a commercial property. Some prefer to rent. Maybe they're not ready to buy, they're not sure they'll stay in the area, or they just do not want the hassle of taking care of the property, preferring to leave that up to the landlord.

Renting can be the right decision for your company, but make sure you really consider both sides. There are many reasons to buy, instead, including the fact that you lock in the payments.

Say you take out a 15-year mortgage on your property. If you escrow for the property taxes and the insurance, the monthly payments may go up slightly from one year to the next, but they will stay roughly the same. You also get a locked interest rate. No matter what the rates do over the next 15 years, you know what you have to pay. That's huge for a business, as you can now accurately budget for your expenses.

If you rent, there is no such guarantee. The rental rates may rise every time you sign a new lease. You may have to do that every year. If your business does really well, the area improves overall, and the costs go up, you have to pay for it. If you buy, you still pay the same amount, without these unexpected and unwanted increases.

This is just one reason to buy, but it helps you start thinking about the advantages. Make sure you also know what legal steps you'll need to take.

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