As a new or soon-to-be practioner, you have lots of questions that podiatry school didn’t answer about setting up your practice. At the Institute for Podiatric Excellence and Development (IPED), we bring together podiatric professionals at all stages of their careers to share information and exchange ideas about all types of issues that affect your practice (and your life outside your practice).
Last week we looked at the pros and cons of renting space for your practice. This week we will consider the same for owning your office space.
- Owning a building can be a good investment. You will build equity as the value of your property increases.
- If the building you own is bigger than what you need for your practice, it can be rented for additional income.
- You have control over the way the space is divided and remodeled on the inside as well as expansion and additions.
- You have control over maintenance expenses and choices of vendors for these services.
- Owning the facility can increase the marketability of your practice when you are ready to sell. It can also be part of the funding of your retirement through a sale or as a rental unit.
- The biggest impediment to ownership is the initial financing. Typically you will need a substantial down payment, making the start up costs much higher than a rental.
- Owning brings a bigger tax liability.
- You will have the additional work of making sure your facility is maintained and also have to handle repairs as the need arises (which can significantly increase your workload).
- When it comes time to sell your practice, depending on the building and its value, it may be more challenging to sell your practice and your facility together.
As an IPED member, you have a source of information and contacts with other podiatric professionals that will serve you well as you start your practice and continue to be there for you as your practice grows and matures. To learn more about the benefits of membership and how to join, contact our Executive Director, Ruth Ann Donahue at firstname.lastname@example.org.