Many of our clients, at some time in their business life cycle, consider investing in real estate. Whether it’s a commercial space for the own business, or to rent to others, or even a second home or collection of rental properties, there are decisions to be made and tax implications to consider. There are several things we’ll help clients analyze as they ponder the purchase of commercial or residential real estate:
- Is there a tax benefit, or even a cost savings, involved if the purchase is made?
- What is the potential return on investment, and would that return be greater if the money was invested elsewhere?
- What are the risks involved?
- If the property is for rental purposes, how much rent must be charged and is that amount in line with what the market will bear?
Performing this analysis and putting together forecasts under various scenarios helps to take the emotion out of the decision, and allows the client to make a fully informed choice.