Owning your dental business property, along with your practice, has the unique advantage of laying a broader foundation for future growth. The three most significant advantages to owning your business real estate are:
Control. When you own the business property as well as the practice, you have complete control to develop, operate and modify the building to your needs as the practice evolves, and as zoning regulations allow. You are no longer at the mercy of your landlord’s guidelines for space modifications, and can adapt your building infrastructure to accommodate future developments in dental technology. This gives you maximum flexibility to build the practice you want with the building and equipment enhancements you need.
Stability. When you own your own property, whether a home or a business, you enjoy greater long-term stability in the costs associated with the property. You can more easily project the annual costs for your practice investment according to your mortgage contract, insurance and estimated property tax, without the vagaries associated with lease agreement renewals. This helps practice owners conduct long-term planning without having to worry about increased lease payments or a cancelled lease.
Financial benefits. Property ownership confers a variety of tax benefits such as depreciation allowances and mortgage interest deductions. Combined with potential appreciation of your property, the opportunity for rental income from tenants, and the generation of retirement income upon sale, your business property has the potential to work as hard for you as you work for your patients.