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Rent or Buy a commercial premisies

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  • 05-07-2012 2:53pm
    #1
    dm012345
    Registered Users Posts: 9 ✭


    I am currently on the lookout for a third premises. Currently paying 22k and 24k rent for my first two properties I can buy a similar premises for about 250k in my next location what are the pro's and cons to buying rather than renting, surely its more beneficial to a company to be paying off a mortgage rather than paying rent. Myself and my business partner could also self finance the premises would there be a tax efficient way of making this worthwhile?


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    #2
    drunkmonkey
    Registered Users Posts: 28,193 ✭✭✭✭drunkmonkey


    My accountant was telling me about some scheme where by if you buy (the company) property now if you sell it again and make a profit on it in the next 5 years there's no tax liability on the profit. I'm not sure the ins and out's but it's worth asking about. I just couldn't find a property for sale to forgot about the idea. I'm still renting but will buy if a place comes up in the right location.


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    #3
    dm012345
    Registered Users Posts: 9 ✭dm012345


    Thanks drunkmonkey ye I will look into that, altho 5 years is a relatively short term and would hope to be operating out of this premises for many years to come


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    #4
    smeharg
    Registered Users Posts: 300 ✭✭smeharg


    dm012345 wrote: »
    I am currently on the lookout for a third premises. Currently paying 22k and 24k rent for my first two properties I can buy a similar premises for about 250k in my next location what are the pro's and cons to buying rather than renting, surely its more beneficial to a company to be paying off a mortgage rather than paying rent. Myself and my business partner could also self finance the premises would there be a tax efficient way of making this worthwhile?

    The company would get a tax deduction for the full rent payment but only the interest element of a mortgage repayment.

    It is can be more tax efficient to purchase the premises personally and let it to the company. However there are downsides to this and there is no one size fits all solution.

    Speak to a professional and get proper advice. There's a multitude of things to consider.

    The relief referred to above was introduced in the last budget. The property must be held for at least 7 years. It is not a total exemption.


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    #5
    gmgm.cool
    Registered Users Posts: 34 ✭gmgm.cool


    Any more advice's on buying commercial properties.


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