Small Business Real Estate Investments

With the stock market hitting new lows, real estate has become an attractive investment for many Americans. To a small business owner, the idea of buying an office, a building and/or land might be appealing. Also, interest rates are now so low that buying, as opposed to renting, might work to a company’s advantage. However, according to several business real estate experts, the primary reason for purchasing an office, building or land should be to operate a business, rather than use it as an investment.

When considering costs, a business owner should study the overall real estate climate, the company’s financial and tax situation, and local business restrictions and zoning. Prince William County is an especially tough place to start a business or improve business properties.

Buying can have advantages for many business owners. An example that may make sense to a small business owner is to buy a building and rent it to the business. The rental income would be subject to fewer taxes than the same amount drawn as salary, since there are no payroll taxes on rental income.

As a final note, before making the move toward buying real estate for your business, you must calculate the cost of going forward to owning versus continuing to rent. The NBA recommends that you seek expert financial advice and help from real estate and business professionals. If the figures look good for your business and you desire to buy, the NBA has many members who can help you.

Tony Slaga, VP, NBA