Yerkes Upstate SC Blog
23
Apr

Mini Benefit-Risk Analysis - Leasing vs. Ownership


Some Benefits of Leasing:

  • Easy means to occupy real estate, often with lower up-front capital requirements.
  • Ease of disposition at end-of-term.
  • Ability to select a length of lease term, within reason, to support operational requirements.
  • Flexibility of growth, contraction, long or short term, etc.

  •  

Some Risks of Leasing:

  • Fluctuations in market pricing and landlord-provided allowances, incentives, etc.
  • Potential for loss opportunities, associated missed options, and notice dates.
  • Disposition prior to end-of-term can be challenging, depending on supply and demand, and on other factors.
  • Most often dependent on third-party management for quality of life and service issues.

  •  

Some Benefits of Ownership:

  • There comes a point in time after which, with continued occupancy, ownership becomes less expensive each year on a cash basis.
  • Depreciation (may not be beneficial to publicly held companies).
  • Income tax benefits.
  • Capital appreciation.

  •  

Some Risks of Ownership:

  • Ownership of real estate is a separate business that requires attention.
  • Potential loss of value.
  • Interest rate and economic risk.
  • Neighborhood, transportation, and demographic risks.
  • Less flexibility than leasing.


Source: It's Not Just About Real Estate by Andrew B Zezas


 

Compliments of:


Yerkes Upstate Real Estate Services

RESIDENTIAL, INVESTMENT, COMMERCIAL

LAND, FARM, PROPERTY MANAGEMENT
Global Relocation and Referral Services

Personal * Service * Support * Professionalism * Integrity

Providing friendly dedicated service - customized to your needs.

Using state-of-the-art methods to find the right property for you
and/or sell your property at the best possible price.

 

YerkesUpstate.com
 

Yerkes Upstate SC

 

 

 



Yerkes Upstate
SC Lic. 101364 / 100261
Mobile: 864-735-8776
Office: 864-209-1864
Website: Visit Website
eMail: Contact

Only Way Realty Greenville
20 Roper Corners Circle Suite B
Greenville, SC 29615
Blog Archives
Featured
Blog Contents Copyright 2017 by Lawerence Yerkes, All Rights Reserved. Information Deemed Reliable, but Not Guaranteed. Any property information being provided is for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating to real estate for sale on this blog and personal web site comes in part from the participating Brokers.
Design & Contents Copyright © 2017 - AgentMarketing.com - All rights reserved - Single Property Websites