If you currently rent your practice premises, you might have thought about purchasing your practice premises instead – after all, it can provide benefits such as security, long-term asset appreciation and income generation. It’s likely you’ve already had some of these thoughts, but understanding how to purchase your practice premises and what you need to do to get the ball rolling can be hard to navigate.
To assist, we continue our two-part series on practice premise finance with this article, tapping into insights from Scott Hutchinson, commercial expert at Credabl.
Firstly, why would you decide to purchase your practice premises? Owning the building and/or land where your practice resides in means that you are investing in a long-term asset that can appreciate over time.
Scott explains that buying your premises not only secures a permanent location for your practice, but also contributes to building your financial wealth. Unlike paying rent, which offers no return, mortgage payments on your property build equity and create a valuable asset for your future. If you purchase a building with rooms that you do not need, you can also rent these rooms out to subsidise your mortgage repayments.
It is essential to engage with an accountant or financial adviser to consider the long-term implications of purchasing practice premises. Scott advises clients to think about potential appreciation, the stability of operating costs and the autonomy to modify the space to suit evolving practice needs. Ownership removes the uncertainty of rent increases and lease expirations, providing more predictable financial planning.
Additionally, there are some questions you should ask yourself when making this decision:
Navigating the purchase of practice premises can be complex, involving market analysis, legal considerations and detailed financial planning. Scott underscores the importance of having a strong support team that consists of an expert specialised financer, a knowledgeable accountant and a skilled lawyer. These professionals ensure that the financial and legal aspects of your purchase are sound, providing peace of mind throughout the process.
Choosing Credabl for your practice premise finance means partnering with specialists who understand the unique demands of the healthcare industry. We offer bespoke financial solutions that cater to the diverse needs of medical professionals, including the option for 100% financing. This can be attractive for those who cannot acquire a deposit, but can afford to service a loan. We can also have extensive experience with complex ownership structures, such as trusts and super funds and have the expertise to guide you through the finance process.
Purchasing your practice premises is a strategic decision that can significantly influence the future of your healthcare services and overall financial health. With expert guidance from Scott and comprehensive financing solutions from Credabl, you can navigate this decision with confidence. Together, we can ensure that your path aligns perfectly with your professional aspirations and financial objectives.
If you are ready to explore how buying your practice premises can benefit you financially, reach out to our team today to ensure you have the right support, or speak to Scott or any of our Credabl consultants on 1300 27 33 22.