Is it better for a business to buy or lease their property?
Join Lawrence Mak and Cam Forbes from RE/MAX Realtron as we discuss the advantages of a business owner to buy or lease their own property.
Lawrence Mak, Broker | RE/MAX Realtron Realty Inc.
Cameron Forbes, MBA, CPA, Broker, General Manager | RE/Max Realtron Realty Inc.
0:50 Is it better for a business to buy or lease a property?
1:20 In general, owning is a better way to go
1:27 Businesses might need flexibility in terms of location or capital
1:40 Employ their capital on equipment or inventory
1:48 If they have the capital, it’s better to own long-term
2:15 Financing is usually more difficult
2:22 Capital is tied up in the property
2:36 We are talking retail, office or industrial
2:44 Generally get about a 60% Loan to Value (LTV)
2:53 For example, $1M property would require a $400k cash down-payment
3:11 (Commercial) interest rates are also higher
3:42 The main recommendation is to talk with an commercial expert
4:16 Call me at (416) 276-4895