Bricks and Mortar… But Who Owns It?
Investing in property is an excellent move for a business, as it’s an asset that comes with multiple benefits. However, aside from putting a lot of thought into whether now is the best time to make a purchase and then choosing the right kind of premises, you also need to work out the ownership structure. This can make a huge difference to how the business is run both now and in the long term, which is why our business advisors are here to help you make an informed decision when it comes to property investment.
As mentioned above, there are a few benefits that come with purchasing a property through a limited company, which we’ve listed below.
Better control over your finances
This is one of the most common reasons for businesses to purchase property. With rental values regularly increasing, you gain a lot more control over your outgoings when you take out a commercial mortgage. As an added bonus, the interest on your commercial mortgage will also be tax-deductible.
You can adapt the building
Renting commercial property comes with many limitations. Chances are that there won’t be a way for you to extend, adapt, structurally transform or even fully decorate the building, which means that you have to create office layouts that may not be perfectly optimised. As your company grows, you’ll no doubt find that the premises become cramped and noisy too, which can affect health and safety, morale and wellbeing, productivity and workflow.
By purchasing a commercial property, you have almost unlimited opportunities at your disposal, especially if the premises have outdoor areas that could accommodate new structures, modular buildings, amenities or parking areas.
Every penny is an investment
When you purchase a building through your business, you’ll be paying a mortgage rather than rent. Needless to say, this is a savvy way to ensure that your hard-earned cash is being invested into an asset instead of being handed over to a landlord. If in the future you need to move premises, you can sell the building and potentially make a profit.
Looking to invest in commercial property?
Our accountants, tax consultants and business advisory specialists are here to help you make key decisions with clarity and confidence. To book a meeting, call our Northern office on 01482 235575, our London office on 0207 885 0605, or fill in the contact form below.
Tagged as: Small Business Help
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