Starting your own clinical practice can be quite a daunting task. While there are many things you may have to do, there is also the task of facing the question, whether to lease or buy your clinic space.
You will have to weigh the pros and cons of both these options before making your decision. Here are a few key facts that can make it easier for you to take your decision:
Buying your own clinic space
Your costs are fixed
Once you decide to buy your own clinic space, you will obviously be taking out a long-term commercial mortgage. If you go for a fixed rate mortgage the monthly payments that you will have to make will be fixed throughout the life of the mortgage. These fixed costs can make it easier for you to forecast your operational expenses and run your clinic efficiently.
You get tax deductions
Once you own your clinic space, you can claim tax deductions through property taxes, mortgage interest, etc. This can help you save money in the long run.
Opportunity to earn additional income
Since the clinical space would be all yours, you can even rent out some extra space and earn an additional source of income. If you don’t have adequate funds to put in the down payment, you could even partner with another medical professional and split your costs. You could even hire medical professionals on a consultancy basis and attract more patients.
Adds up to your retirement savings
Owning your clinic space would mean appreciation of the property value over time. You always have the option to sell it out and fund your retirement. If not you could even lease it out and enjoy regular monthly income for years to come.
High initial cost
Buying clinical space would mean paying upfront costs that can work out very expensive initially. Apart from the large down payment, you will also have to look into property improvement costs, maintenance costs, property taxes, and appraisal costs.
Unfortunately the clinic space that you own will not grow with the growth or expansion of your medical practice. Going further, you may be forced to sell your property if it doesn’t suffice your growing needs.
Leasing clinic space
Option to choose prime property
Location and image play a very important role in determining the profits that you are going to make by running your clinic. Since leasing does not involve putting up that large down payment, you stand at an advantage of choosing clinic space in a prime location. The high purchasing power of the potential patients can help in covering the lease amount that you may have to pay for the clinic space, making your investment absolutely affordable.
More working capital
Investing in advanced technology equipment becomes crucial when it comes to establishing the credibility of your clinic. Leasing out clinic space can give you that extra borrowing power that you can use to buy equipment or provide facilities that can lure patients and increase your returns. It helps you gain a competitive edge as well.
No hassles; more time
Owning a clinic space comes with its own set of headaches. There would be a lot of things you may need to attend to. However a leasing option can free you from such hassles and give you all the time that you need to focus on running your clinic efficiently.
When leasing out your clinic space you will have to consider all those annual rent increases and the increase in costs when you will have to renew your lease. With such variable costs you will have to make sure your revenues increase from year to year.
By leasing clinic space, you are only funding the retirement expenses of someone else. There is no property in your name and hence you cannot expect any kind of equity that can help you later in your life.
It is up to you to decide whether you want to buy or lease your clinic space. It might depend on many things such as taxes, finances and personal issues. You may even want to bring in a financial planner or an accountant to offer you the best advice in this situation. Whatever you decide hospitalforsalelease.com can offer you some of the best opportunities to support that decision.
By registering with us, you can buy or take on lease, an established clinic or hospital with all the equipment that you would need. Our clients include doctors who would like to sell or lease out their property as well as professional realtors who are into medical real estate. You can choose the location you are interested in and negotiate the prices on your own terms. The best part is that there are no middlemen involved and hence no hassles of paying any commission.
So, what are you waiting for? Check https://www.hospitalforsalelease.com/