Owning your Practice Rooms
It is possible to find a great practice location for you. Better yet, it may invite opportunities for other medical providers to partner with you and extend your service offering. Whether you are looking for a practice location, or even if you already own one, we give you a rundown of what is possible when you own your Practice Rooms.
What are the advantages?
Many of our clients own their practice rooms. Whether you are a sole practitioner or a partner in a medical practice, there are a number of advantages to owning your own Practice Rooms including:
- Owning a property in a prime location is generally a good investment for the future.
- Being your own landlord ie. not having to be concerned with lease renewals, maintenance arguments, investing in a fitout of a property you do not own, etc.
- Lease payments are no longer dead money, they are now either repaying debt on your assets or providing you with a source of investment income.
- Favourable structuring of your taxation arrangements in a manner that is effective for you.
How would you structure this arrangement?
Purchasing a property to utilise as your Practice Rooms can be done in a number of ways. The most common way is via a Unit Trust if two or more parties are involved. Utilising a Unit Trust allows flexibility in whom the Unit Holders are, whether it is a Family Trust or Self Managed Super Fund (provided specific conditions are met). This structure also allows ease of additional Unit Holders or transfer of Units from one party to another. There are alternative ways of structuring this arrangement.
Would this arrangement suit you and your business? Make a start today and find out more. Get in touch with our team at BLG Business Advisers and fill out our form online or call (02) 4229 2211.