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Is It More Affordable to Build or Buy a Commercial Building?

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As a business or investor, you may be looking to purchase new commercial property. There is an alternative, however.

There are many factors when considering building your structure from the ground up. Which is the smarter and more affordable option? 

  • Survey The Property

Regardless of what you’re looking to buy, you’ll want to have it professionally surveyed. This allows you to see if there are any repairs, maintenance, or renovations that need to be made.

Having quality groundwork, for instance, is something only a surveyor can assess. They are able to provide options such as ground improvement stone columns to offer stability, improve load-bearing capacity, and reduce any further settlement.

  • Consider Downpayments and Renovations

Buildings that are already constructed will require some type of downpayment if you’re not intending to pay cash in full. This money will need to be saved ahead of time and provided by the investor upon requesting a loan.

There’s also a high probability that the location you decide upon won’t meet the exact specifications for your business’s needs. You’ll have to consider any renovations or building additions needed to suit your investment goals.

New builds allow you to create exactly what you want from the very beginning. The stipulation is that you’ll need to hire contractors and architecture firms, plus buy the land you intend to build on.

  • Look Into Tax Breaks

Investing in commercial real estate could offer some substantial tax breaks you may not be aware of. This applies more specifically if you’re bringing new jobs into the city. They think of it as an investment in your investment.

Properties that are considered historic buildings can be eligible for grants or low-interest loans to restore the building while preserving the integrity of the architecture.

Purchasing a building that already exists can also lead to tax deductions on the interest you’re paying. However, your building also depreciates the minute you purchase it.

While building new construction doesn’t lead to as many tax benefits, there are still certainly a few you could benefit from, such as the 179D Commercial Buildings Energy-Efficient Tax Deduction.

  • Think About How Soon You Need Your Property

One crucial element that a lot of investors don’t take into consideration is time. With new construction, it can take anywhere from two to six months, if not more, to complete the build. Plus, you’ll have to make sure it meets all laws and regulations according to the state and city guidelines.

A benefit of buying a property that’s already been built means you’ll only have to consider the timeframe for repairs, renovations, and decorating. You could be saving money simply because the longer your building is out of commission, the longer you won’t be making any income.

  • Potential To Recoup Costs Through Sub-Leasing

Buying or building a larger commercial property gives you the opportunity for sub-leasing. If you’re buying a building outright, it may not accommodate another business leasing out an office space.

If you decide to build out a new property, you can make it larger than you anticipate your needs being and sub-lease. It’s a larger investment from the beginning, but if you work out the numbers, you could easily recoup costs and make an even more significant stream of revenue.

Eventually, if your business needs to expand, you can utilize the extra space previously leased by other tenants for yourself.

Summary

There is no clear-cut answer as to which is the more affordable option, to buy or to build, when it comes to commercial real estate. There are several factors to take into consideration, with the most important being your budget.

Work with a professional accountant to look into your personal investments, outside investors, and any potential help you could get from applying for a loan. Understand clearly what your end goal is so they can help decipher whether new construction or buying pre-built is a better option for you.

The idea of Bigtime Daily landed this engineer cum journalist from a multi-national company to the digital avenue. Matthew brought life to this idea and rendered all that was necessary to create an interactive and attractive platform for the readers. Apart from managing the platform, he also contributes his expertise in business niche.

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Business

Turning Tragedy into Triumph Through Walking With Anthony

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On the morning of February 6, 2010, Anthony Purcell took a moment to admire the churning surf before plunging into the waves off Miami Beach. Though he had made the dive numerous times before, that morning was destined to be different when he crashed into a hidden sandbar, sustaining bruises to his C5 and C6 vertebrae and breaking his neck.

“I was completely submerged and unable to rise to the surface,” Purcell recalls. “Fortunately, my cousin Bernie saw what was happening and came to my rescue. He saved my life, but things would never be the same after that dive.”

Like thousands of others who are confronted with a spinal cord injury (SCI), Purcell plunged headlong into long months of hopelessness and despair. Eventually, however, he learned to turn personal tragedy into triumph as he reached out to fellow SCI victims by launching Walking With Anthony.

Living with SCI: the first dark days

Initial rehabilitation for those with SCIs takes an average of three to six months, during which time they must relearn hundreds of fundamental skills and adjust to what feels like an entirely new body. Unfortunately, after 21 days, Purcell’s insurance stopped paying for this essential treatment, even though he had made only minimal improvement in such a short time.

“Insurance companies cover rehab costs for people with back injuries, but not for people with spinal cord injuries,” explains Purcell. “We were practically thrown to the curb. At that time, I was so immobile that I couldn’t even raise my arms to feed myself.”

Instead of giving up, Purcell’s mother chose to battle his SCI with long-term rehab. She enrolled Purcell in Project Walk, a rehabilitation facility located in Carlsbad, California, but one that came with an annual cost of over $100,000.

“My parents paid for rehabilitation treatment for over three years,” says Purcell. “Throughout that time, they taught me the importance of patience, compassion, and unconditional love.”

Yet despite his family’s support, Purcell still struggled. “Those were dark days when I couldn’t bring myself to accept the bleak prognosis ahead of me,” he says. “I faced life in a wheelchair and the never-ending struggle for healthcare access, coverage, and advocacy. I hit my share of low points, and there were times when I seriously contemplated giving up on life altogether.”

Purcell finds a new purpose in helping others with SCIs

After long months of depression and self-doubt, Purcell’s mother determined it was time for her son to find purpose beyond rehabilitation.

“My mom suggested I start Walking With Anthony to show people with spinal cord injuries that they were not alone,” Purcell remarks. “When I began to focus on other people besides myself, I realized that people all around the world with spinal cord injuries were suffering because of restrictions on coverage and healthcare access. The question that plagued me most was, ‘What about the people with spinal cord injuries who cannot afford the cost of rehabilitation?’ I had no idea how they were managing.”

Purcell and his mother knew they wanted to make a difference for other people with SCIs, starting with the creation of grants to help cover essentials like assistive technology and emergency finances. To date, they have helped over 100 SCI patients get back on their feet after suffering a similar life-altering accident.

Purcell demonstrates the power and necessity of rehab for people with SCIs

After targeted rehab, Purcell’s physical and mental health improved drastically. Today, he is able to care for himself, drive his own car, and has even returned to work.

“Thanks to my family’s financial and emotional support, I am making amazing physical improvement,” Purcell comments. “I mustered the strength to rebuild my life and even found the nerve to message Karen, a high school classmate I’d always had a thing for. We reconnected, our friendship evolved into love, and we tied the knot in 2017.”

After all that, Purcell found the drive to push toward one further personal triumph. He married but did not believe a family was in his future. Regardless of his remarkable progress, physicians told him biological children were not an option.

Despite being paralyzed from the chest down, Purcell continued to look for hope. Finally, Dr. Jesse Mills of UCLA Health’s Male Reproductive Medicine department assured Purcell and his wife that the right medical care and in vitro fertilization could make their dream of becoming parents a reality.

“Payton joined our family in the spring of 2023,” Purcell reports. “For so long, I believed my spinal cord injury had taken everything I cared about, but now I am grateful every day. I work to help other people with spinal cord injuries find the same joy and hope. We provide them with access to specialists, funding to pay for innovative treatments, and the desire to move forward with a focus on the future.”

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