Lease or Buy

Is renting better than buying? It depends on many factors, particularly how fast prices and rents rise and how long you stay in your space. Compare the costs of buying and renting a property in the section below.


Purchasing costs incur when you go to the closing for the property you are purchasing. Yearly costs are recurring monthly or yearly expenses. These include mortgage payments, condo fees (or other community living fees), renovation costs, maintenance costs, property taxes and homeowner’s insurance. Property taxes, the interest part of the mortgage payment, and in some cases, a portion of the common charges, are tax deductible. The resulting tax savings is accounted for in each item’s totals. The mortgage payment amount increases each year for the term of the loan because the tax credit shrinks each year as the interest portion of the payments becomes smaller.

Lost opportunity costs are tracked for the initial purchase costs and for the yearly costs. The former will give you an idea of how much you could have made if you had invested the down payment instead of buying your home.

Selling costs are the costs you incur when you go to the closing for the home you are selling. This includes the broker’s commission and other fees, as well as the remaining principal balance that you pay to your mortgage bank. “Proceeds from home sale” is the money that you receive from the person who is buying your home. This amount is equal to the value of the home that year and is shown as a negative number since it is not something that you spend money on, but rather, it is money you receive.

If your cumulative buying total is negative, it actually means you have done very well: you made enough of a profit that it not only covered the cost of your home, but also all of your yearly operating expenses.


Leasing a medical property can have its benefits. A temporary space could be the perfect solution while another space in under construction or when moving to a new neighborhood. Lease terms can be customized from short term to long term. Among its benefits is property management. You don’t have to worry about maintaining the property when you’re in a lease. Many of the landscaping and building maintenance details will be taken care of for you. Some leases require certain improvements made by the tenant before the end of the lease term. Alternatively, the landlord may 
require that the tenant remove
 certain improvements made to the
 premises at the tenant’s
 expense.The initial investment for a lease is also lower than purchasing space. Tax benefits is another benefit that leasing can have in certain situations.

While leasing has the benefits of skipping tendious property management details, over time it could be more costly, depending on where you lease your space. A lease agreement does not offer an opportunity to earn profits from the appreciation of the property.

Our leasing experts can help you weigh those options to see if leasing is right for you. There are additional benefits and options to consider when reviewing lease options. Take a look at a few quick points about leasing.

Quick Points:

  • Initial costs are the rent, security deposit and, if applicable, the broker’s fee.
  • Yearly costs are the monthly rent and the cost of renter’s insurance.
  • Lost opportunity costs are calculated each year for both your initial costs and your yearly costs.
  • Leaving your rental is equal to the rent security deposit, typically returned to a renter at the end of a lease.

Medical Real Estate Information