Who is the wise man? He who sees what's going to be born.
Train up a child in the way that he should go: and when he is old, he will not depart from it.
A wise son makes a father glad, but a foolish son is a sorrow to his mother
4. Energy Inefficiency
Is the building energy efficient? Will the state or federal government require it to be? How much are the utilities truly going to cost?
Utilities are a bottom line expense and often completely out of the owners’ control. Most in the medical community have no knowledge of how to manage this expense. Even fewer are privy to the conservation products on the market. If you are unfamiliar with terms such as: Energy Metering, Power Factor Correction, Kilowatt-hours (kWh), or Demand Rate; you definitely should not own a commercial property.
In conclusion, property ownership is not for the faint of heart. If you own property or are thinking about jumping into this world, you should consult a firm with expertise in all of the areas listed above to ensure your investment will perform as intended.
If you would like more information on how to maximize your investment through tax strategies and energy conservation products, there are free consultations available for you.
If you or your CPA has not aligned yourselves with outside expertise in specialized areas such as: Procurement of Tax Incentives, Accelerated Depreciation, Property Valuation, and Energy Efficiency Incentives – you should not own commercial property.
This leads us into…
3. End Up Paying Way too Much in Taxes
The government has done a reasonable job at providing tax incentives for property owners. The problem; they don’t know how to disseminate information to the beneficiaries. In other words, the government passes a bill and those that were intended to benefit don’t get the memo! Because of this, owners of property end up paying much more than they should in taxes. Additionally, property tax valuations across the nation are completely out of whack due to the recent recession. Properties are simply not worth the amount they are being assessed. If you are not an expert in property valuations and assessments, you either need to find one or stay out of commercial property ownership.