Why rent when you can buy your Practice Premises?
Most small and medium sized practices do not have the funds available to purchase their premises outright. Purchasing your own premises can be a time consuming exercise. Here's a quick list of pros and cons to help you make your decision.
If you do choose to buy, there are several advantages:
- When you own your own premises you are in control and can stay in the rooms as long as they suit your needs
- Your costs are relatively fixed, particularly if you have a fixed rate loan, whereas rents are changeable and subject to review.
- You can renovate the premises to suit your patient and staff requirements
- In the long term, if you choose your location wisely, it is likely that the value of the property will rise.
- By investing in your own commercial premises you may be able to convert your rental repayments into an investment for your financial future. Make the comparison - it's possible that monthly loan repayments are similar to your current rental costs.
Against these advantages you need to weigh the disadvantages. Buying property can be an expensive and time consuming process involving significant professional fees and stamp duty. You'll also need to budget for repairs and maintenance costs.
Looking at the finance for your practice premises, there are loan products available that are custom designed for healthcare practitioners.
Paul Nadge of Medfin Finance advises: "Look for a financier that doesn't speak jargon, search for loan advice that is effective and easy to understand. Doctors are not necessarily property experts. That's why Medfin's Relationship Managers are trained to help practitioners to walk step by step, through the loan process".
"Talk to your accountant about the benefits of choosing a practice property loan that does not require a deposit. By not using your own funds, you may benefit by conserving your money for investment in other areas" suggests Paul Nadge. "Always ask about the fees and charges. And I can't stress my next piece of advice strongly enough - please make sure you know that your monthly repayment is calculated on the rate you have discussed with your finance company".
If you'd like further information on Medfin's Practice Property Loan or wish to check that the rate you have been quoted matches the repayment you will be charged, call your local Medfin Relationship Manager on 08 8224 0323.
