Friday, October 21, 2011

Should Dentist Lease or Buy Office?

Right now we are leasing a 1600 square foot office for $5,000 a month (we need additional room for growth).

The opportunity has come up to purchase a 2800 square foot condo for 1.2 million.

Who/what type of person should I talk to about seeing how my monthly financials will run? I just want to make sure I can handle the increase in payments.

I remember from school, once you own the place, there are more ways to shelter money, so your actualized monthly expense is less than if I were to lease

The twist for you is your statement about wanting to expand. Is it a want or a need? If it's a need, how will it impact revenue? You need to run some projections on how 2,800 square feet will impact your practice, both in expected revenue increase and OH increase and compare that to renting 2,800 square feet.

That’s what I would do.


This first appeared on Dentaltown.


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