How do you know whether to buy or lease your practice space? It’s one of the most important decisions you’ll make in your career, and asking the right questions upfront can make all the difference. Watch this short video for factors to consider when choosing to buy or lease.
Don’t assume that purchasing your office space is a no-brainer; buying a practice isn’t always your best bet. Before you buy, there are four factors you should consider.
Location – Space in an optimal location that you lease will benefit your practice more than a mediocre location that you own. A steady stream of patients is more valuable than the upside of real estate ownership.
Travel – Think about how your choice of location will impact your time. Will it significantly increase your commute and decrease your spare time? If that new location means that you’ll be spending considerably more time in your car, it may not feel like such a good deal after all.
Square Footage – When it comes to square footage, you need to get it just right. Too much space will lead you to pay unnecessary property taxes, utilities, and maintenance fees. Too little space means you’ll be forced to move if you want to accommodate your business’ growth. If you’re not sure how much square footage you need, stay put until you do.
Length of Ownership – The longer you hold on to any appreciating asset, the higher your return on investment will be. In other words, if you’re not sure you want to hold onto a piece of property for at least 10 years, don’t buy it.
For personalized real estate advice, call the Dentist Advisors team. We’re the industry-leading wealth management firm for dentists and specialists, so we can help you make the smart decision for your practice.