Opening a shop.....renting vs. buying?

[Murpheeee]

My wife is thinking of starting her own dog grooming business and its not really practical from home, so she is looking for a shop.

What are the pros and cons of leasing vs. buying?

Buying seems much cheaper.....

Of course the obvious ones like if you buy you are responsible for maintenance & repairs, if your business goes down the pan you are stuck with a shop to sell....

What are the less obvious ones?

Any advice for a n00b?

 

[jagr10]

Figure out how much you think you'll make (monthly and yearly projections). See which will be better for you based on your projections. Also consider the fact that by owning it your payments will slowly go down over time as you pay off more of the shop. With leasing it'll probably go up over time and you can be booted out when the lease expires.

 

[Murpheeee]

do you pay any kind of property taxes on commercial buildings?

 

[bmacd]

figure out about maintainence too, ie. if the landowner is responsible for parking lot repairs, landscaping, liability of accidents, etc.

-=bmacd=-

 

[Spencer278]

Originally posted by: Murpheeee
do you pay any kind of property taxes on commercial buildings?

Yes. Generally it is more then on non-commerical property.

 

[Dug]

If the landlord finds out you make a lot of money, he'll kick you out and start his own business there. Or start it and find someone to run it for him.