One of the biggest questions that faces a new business owner is whether it would be better to lease commercial properties in Toronto or buy them outright. Each method has its pros and cons, so you should choose the one that is right for you. If you're currently grappling with this question, here are some of the factors that should play into your decision. Hopefully they can help you get things straight in your mind.

Cost

This is often the factor that kills the dreams of business owners who want to own the property they operate out of as a physiotherapist in Toronto. Commercial property prices, especially in central Toronto, are often prohibitively expensive for a business that is just starting out. Most banks will not trust to your future success enough to lend you millions for a property purchase, so you will have to lease for a while before you can build up their confidence in you.

Future Plans

What are your future plans for your business? Do you envision your Stouffville optometrist clinic expanding into a whole medical practice with many types of doctors? Will you have to invest a lot of time and money into renovating the property in order to accommodate your business? These things can determine whether it's better to lease or buy. If you envision expansions or moves, leasing is better. If you have to renovate, better to own than lease and lose the work when you move.

Market Conditions

The market conditions can also play into your decision. If you're setting up a business in Georgetown, Ontario early in a neighborhood's life cycle, you can pick up commercial land for cheap and watch it appreciate. Likewise if you expect the market to take a downturn in the near future, you don't want to make a purchase and end up with an unsellable property if you want to get rid of it in a few years.

Responsibility

And finally, you need to ask yourself how responsible you want to be for your premises. If you lease space for your Massage Mississauga franchise, your landlord will be responsible for any repairs and maintenance on the structure. If you own it, you will. You will also be at the beck and call of any other tenants in the building. Decide how much work you're willing to do and whether you can afford the insurance on the whole building before you make your decision.