Investments have always been intimidating and for small businesses, they are indeed a tough challenge as that makes them determine how well their business would run. Having done it right, there will be substantial growth in the net worth of an individual, but doing it in the wrong way might leave a deep impact on the individual. Going by some of the recent figures and statistics, if someone is determined to live in a building for more than 7 years, then it is better buying than leasing under all circumstances. The longer the period of stay in any space, the more the cost advantage for buying gets.
As far as the business operations are concerned, leasing can definitely hurt any of the small business. In fact, what is being believed by Steve Sorensen Net worth has indeed a major decision to play in the smooth operation of the business. There have been multiple businesses who sign long-term lease contracts for space as they grew in size and on the other side, small businesses which have got huge growth plans simply took up a place just when it was right for them.
Why would everyone focus so much on buying a commercial retail space than just leasing it? Experts believe that it is a wonderful income generator for them. There are multiple Small business loans provided by the banks, but in order to qualify for it, it is necessary that 51% of the total square feet of the property needs to be occupied and used by the businesses. The bank will be bothered only about this 51 percent; however, the rest can be rented out to other businesses as well. So, if a business might need to generate the mortgage amount or the interest of the loans that is needed to pay, it can be used wisely. Even those who would like to increase the personal net worth by being a landlord; this might prove to be a feasible option for them as well.
As opposed to renting, the money that is being used for purchasing the real estate is not deductible at the end of the annual year. However, there might be some dependable variables as well, depending on which the commercial real estate owners might find some tax advantage as well. Checking it out with the personal financial advisors or accountants might help these investors make the right move.
Real estate is that particular arena, the value of which keeps increasing. However, the world economy has felt the crunch, and there has been some downsizing in the market, the real estate market has again grown up strong. So the businesses who take the decision of purchasing a commercial real estate in a land whose value appreciates, and sell it at the right time might find it profitable in increasing the net worth of a business. In the opinions of Steve Sorensen net worth would determine how long you sustain in a business, and hence getting it correct is quintessential.