rbc new
  • Property Search
  • Broker Search
  • Mortgage Broker Search
 
 

Purchasing or Leasing a Business in Toronto: What you need to know before Deciding

 

As the 5th largest city in the whole of North America and ranked next to huge economic powerhouses like New York, Boston and Chicago, Toronto is one of the best locations where business can thrive and rake in serious profits. A population of over 2.5 million people makes up the city and this will be what you can tap into. Virtually any business idea capable of making money is possible in Toronto and many other business people can invest in your idea. Toronto is truly a business hub in Canada as it brings in 10.9% of the total GDP the whole country gets.

However, getting commercial land in the city is difficult and can prove to be evasive. The only option that can work out for you is to look for a lease on commercial space. Business for sale in Toronto can prove to be something difficult and if you don’t watch out, you can give up. So what should someone do? Having some information and knowledge will take you a long way. Below we shall see some factors that should be considered and weighed whether leasing or purchasing is the best option.

Factors that should be considered before leasing or purchasing

  • One thing you need to understand about a business that is for sale in Toronto is that purchasing a business means the ownership transfers to you. With this comes the responsibility of paying the operating costs incurred by the building as well as renovation and any other bill. On the plus side, if the property is leased the only bill you’re answerable to is rent.
  • There are benefits to purchasing property for business. However, if you decide to go down this path, be ready to part with a considerable amount of money. A business for sale in Toronto can incur the buyer quite a lot of money. A tip for those who want to save something substantial- lease the property. This will be the same just that you won’t have the privilege changing major things in the building.
  • Since buying property in Toronto is quite taxing and leaves a huge financial hole to fill, the business may suffer in terms of how much capital you can inject in the actual business. A business for sale is a lucrative deal but consider leasing as the best option. This is because you will spend money on what you need and as you progress you can add more space.
  • Land always appreciates. The difference is the rate of appreciation. Property bought may appreciate at different rates and woe for you if the property you bought gains value at a very slow pace. Leasing does not have such worries. Since the property is not yours, all you need to care about are profits your business is making and the bills that need to be paid.

A business for sale in Toronto can be a good thing in that you’re able to do anything to the building or property as long as it’s within the city by-laws. However, if you do not have enough money to inject into purchasing property, it’s better to lease the property and you can see progress in your endeavors.

Sponsored Profile

Nav Sidhu
Homelife Maple Leaf Reality Ltd. Brokerage
Phone (905) 456-9090
Website http://www.navsidhu.com
Address 263 Queen Street E
Brampton, Ontario
Canada L6W 4K6