Over the last six months, we have received many enquiries from principles of general practices as to the question of owning your own medical property practice.
FVG Property Consultants and Valuers, as the premier experts in medical property valuations Melbourne, hereby provide some relevant points to consider when entertaining this thought. Ownership Vs leasing of your medical property practice?
FVG Property Consultants and Valuers as buyer advocates will always ask the question; does this investment decision make sense, is there a better option and why are we going to purchase? As medical property specialists, there are a number of reasons why the principle/s would definitely consider acquisition. You have control over your destiny both in relation to the business component and the freehold interest.
In some and most instances, the return on dollars invested will be better than a typical residential acquisition, with yield range of 5.0% to 7.0% being the norm. The property at some later stage after acquisition, could be leased back to the business entity, providing tax advantages, as well as security of tenure if again sold. Specialist advice should be sought as to the structure taxation benefits from your accountant, with structure of the lease to be referred to your solicitor and FVG Property Consultants and Valuers.
In relation to the general GP medical centre market as experts in the medical property valuation and advisory sector of Melbourne, one can safely advise that rental growth has been in an upward trend, with initial yield base consistent with supply and demand.
The other advantages to consider if you acquire your own practice may be issues such as building depreciation, negative gearing, SMSF funding, future capital gain tax implications and bank funding.
FVG Property Consultants and Valuers are mindful that some group practices may experience differing wants and needs between principles, or even succession planning or new doctors joining the practice, or retiring.
As the premier medical property valuations entity in Melbourne, we are able to advise on current market terms and conditions at any given point of time due to our specialist database on items such as:– Annual market rent reviews – Annual current value of the freehold interest – Outgoings applicable – Added value components – Buy/sell mechanisms for entering and departing practitioners – Building insurance – Capital Gains Tax
For more information please contact us