A RARE OWNERSHIP OPPORTUNITY.
It Makes Sense to Own Rather Than Lease.
| Topics |
Own |
Lease |
| GROWING EQUITY |
As you pay down your principal and your property appreciates, your equity builds |
Renting brings no economic benefit |
| RENTAL HIKES |
Stable mortgage rates reduce uncertainty |
The market and landlords decide for you |
| MANAGEMENT FEES |
As part of a team of cost-conscious owners, you have your say on the condo board |
Your lease and management company determine operating costs and will change management fees |
| TAX BREAKS |
Depreciate your unit from its full value annually and write off operating and mortgage interest expenses |
Write off your lease as a business expense |
| IMPROVING SPACE |
Money spent for mezzanine and office showroom build out increases unit value |
Improvements benefit landlord and may raise renewal rate |
| LONG-TERM BENEFIT |
Unit is an investment that can be rented to a third party or sold with business |
No economic benefit to you |
COMPARE YOUR COSTS IN THE TABLE BELOW
| OWNING SCENARIO |
OFFICE |
| TOTAL SQUARE FEET |
2,500 |
| PRICE PER SQ. FT. |
$350 |
| PURCHASE PRICE |
$875,000 |
| DOWN PAYMENT |
$218,750 |
| MORTGAGE AMOUNT |
$656,250 |
| MONTHLY MORTGAGE COST (interest only) |
$2,188 |
| ANNUAL MORTGAGE COST (interest only) |
$26,250 |
| MORTGAGE COST PER SQ. FT. (interest only) |
$10.50 |
| LEASING SCENARIO |
OFFICE |
| TOTAL SQUARE FEET |
2,500 |
| LEASE TERM |
10 YEAR |
| ANNUAL RATE (PER SQ. FT.) |
$20 |
| ANNUAL LEASE COST |
$50,000 |
| NET SAVINGS ON OWN
VS. LEASE (10 YR) |
$79,921 |
| EQUITY BUILT DURING
OWNERSHIP (10 YR) |
$490,117 |
| EQUITY BUILT DURING
LEASING (10 YR) |
$0 |
Mortgage based on 4.0% interest rate, 25 years amortization and 25% down payment. Actual mortgage payments will be dependent on qualification of buyer OAC. Equity built assumes 3% annual appreciation and pay down of principal. Interest only calculations based on average monthly interest paid over 10 years. All information provided by this table is for information purposes only and no reliance should be placed on this information for any possible legal purpose or any circumstance where loss or damage could arise as a result of reliance on this information.
