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Buying vs Leasing Your Business Premises

Whether to buy or lease the space your business operates from is a real decision with no single right answer. It comes down to your capital, your plans, and how the numbers work over time. Here is a plain-language look at both, and where financing fits.

What to Weigh

Upfront Capital

Buying typically needs more upfront for the down payment and closing costs; leasing needs less to start.

Cash Flow

Compare a mortgage payment against rent, including operating costs over time.

Time Horizon

How long you plan to stay in the space often tips the decision.

Flexibility vs Control

Leasing is easier to exit. Owning gives you control and payment stability.

Tax and Accounting

Treatment differs for each. Review the specifics with your accountant.

Buy vs Lease at a Glance

Owning Your Premises

Builds equity over time, gives you payment stability and control of the space, and the purchase can be financed.

Leasing Your Premises

Lower upfront cost, easier to relocate, and fewer property responsibilities to manage.

Costs to Consider When you Own

Down Payment

Commercial purchases usually call for more equity than a home; the amount varies by lender and property.

Closing Costs

Legal, appraisal, and inspection, plus land transfer where it applies.

Maintenance and Repairs

As owner, upkeep and larger capital repairs are yours to carry.

Property Tax

An ongoing carrying cost on top of the mortgage payment.

Insurance

Commercial property coverage is a recurring cost to budget for.

A simple cue: the longer you plan to stay and the steadier your business, the more owning tends to make sense. If buying is on the table, we can show you what the financing could look like so you can compare it to leasing with real numbers. Any figures are illustrative only.
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Discuss Commercial Financing

Thinking about buying the space your business uses? Bring us the details and we will walk through what the financing could look like. A licensed member of our commercial team will follow up.

Start a conversation
(902) 835-6420  |  contact@tmgharbourtown.ca

Information here is general and educational. It is not financial, legal, tax, or lending advice, and it is not an offer of financing. Tax and accounting treatment varies, so review your situation with your accountant. Any figures are illustrative only. All financing is subject to lender and property review and supporting documentation. Submission of a form does not guarantee approval or financing.