Читать книгу Building or Refreshing Your Dental Practice - American Dental Association - Страница 35

Here are five good reasons for building your dental practice from the ground up:

1. Favorable trends in commercial property values. Commercial property values have been rising over the past few years, but may now be stabilized or heading back downward, according to the Wall Street Journal.¹ This trend can potentially give you more office space for your investment.

2. Preferential tax treatment. Just as with your home mortgage, you can deduct 100 percent of commercial mortgage interest right off the top of your business income. You can also write off depreciation expenses for the office building over a 39-year period using straight line depreciation (that is, depreciated by equal amounts each year over the property’s useful life). The mortgage deduction and building depreciation write-off reduce your taxable income, increasing your profit for the year.

3. Long-term appreciation. History has shown that real estate appreciates over time, and this will likely continue. When you own both your practice and underlying commercial real estate, you’re making two investments in one — in the value of your practice, and in the long-term appreciation of your property. Together they provide more options for generating profit and cash flow as you build your practice and approach retirement.

4. Retirement funding. When it comes time to retire, some doctors choose to sell both the practice and commercial real estate, maximizing profits and investing net cash to fund their retirement. Others sell the practice only and retain the real estate, leasing the property back to the new practice owner to generate ongoing monthly income. Whichever model you choose, with ownership of both the practice and commercial real estate you have more options for meeting your financial needs.

5. Favorable rates. While interest rates may change at any time, the Federal Reserve has continued to keep its benchmark interest rate close to zero, allowing loan rates to remain at historic lows for both commercial and residential real estate. Today it’s not uncommon for monthly payments on a 25-year commercial mortgage to be the same or lower than rental payments for a similar space. Plus, only a 10 percent down payment is required when you borrow money under the SBA loan program.