Most business owners never stop and ask themselves how can I stop paying forever-rent??? How can I own the premise and not pay for it out of pocket?

Is this even possible?

The answer is, absolutely!

Here are two quick examples:

1. ABC Solicitor’s decided to move out of their $30k p.a rented 100m2 office and purchase a 500m2 building for $1.3m with a $400k deposit (As a small business you may be eligible for an 80%+ loan).

They do a few updates to the property, lease out any remaining areas, and even at a low rent of $200 a metre the building generates $80,000 in net income with the tenants covering outgoings. The property required a $900k interest-only loan requiring payment of $60k p.a. (6.6% interest rate)

ABC Solicitor’s now operates earning $20k p.a. from managing the building, saves $30k p.a. by not paying rent and will benefit from capital growth and future rent increases.

2. If the business doesn’t have a sufficient deposit on hand it could also use the owner/s super via a self-managed super fund to make the commercial property purchase.

There are many rules to consider regarding a SMSF so please seek personal advice. However, the overall outcome will likely be similar upon retirement.

Please keep in mind these principals can work in industrial and retail spaces as well. It's simply a case a sourcing the right property to meet your needs at the right price. These opportunities can be found with consistent focus and patience.

There you have it! How to stop paying rent, pay zero dollars in interest and enjoy the benefits of commercial property ownership!