We have a small office in Santa Ana, 2700 SqFt
The rent is about $4K but the landlord is thinking of selling. I have been told that in this range of square footage it is a good idea to buy and make mortgage payments instead of paying rent. That way I wll benefit from property value increase also. However, is that still the case? Would an office property value increase and would it justify buying? Any feedback is welcome by TimothySpirka from Santa Ana, California. Aug 29th 2009
Debra Clark (Debra Clark)
#146 ranked lender in California - 42 contributions
There are several other factors involved than just the appreciation in property value. For example, is the property being offered at a good price (at or below market value), will the payments be close to or even less than the rent, do you use all the space yourself or will you be sub-leasing a part of it, what is the general state of the commercial buildings near you - are there a lot of vacancies, are they in good shape, ... so you can see what I mean. Having said all of these, if my mortgage payment is close to what i pay in rent (the interest on the mortgage is also a business expense), i would always own rather than rent.
Bryan Wilson (Bryan Wilson)
#149 ranked lender in California - 30 contributions
If you can get the mortgage payment in a range that is affordable is will always be a benefit to purchase vs. renting given future appreciation, add'l tax benefits, etc.Bryan WilsonPresidentMagellan Capital Group & Assoc.949-533-9333
Rudi Hofmann (CaPortfolioLoans)
#281 ranked lender in California - 380 contributions
If you can buy for around $300k I think the numbers will work in your favor. .... Happy funding, Rudi
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