A future user needs to think about strategic considerations in various ways:
- strategic
- compare real estate leasing with
- purchase
- independent and lasting building rights
- renting
- etc.
- attitude to ownership thinking and usage thinking – priority?
- application of means to core business with increased revenues and greater net income
- later financing ability of leasing payments and amortisation
- weighing own chance of a real estate value increase against the transfer of the investment risk to a lessor
- future development of the real estate leasing or with the lessor (official regulations, worsening of industry or market conditions [exit by the lessor] among many other things
- compare real estate leasing with
- legal
- performance interruption vulnerability through necessary permanent debt situation (long-term agreement) versus abstract ownership
- relevance of dependency exposure to lessor (for example, culture change, shareholder or staff changes)
- economic
- operation and modification of the leasing property is highly dependent on the ownership status
- billing
- balance sheet impact
- financial
- ensuring leasing payments and amortisation obligation
- fiscal expenses
- cost comparison of real estate leasing with mortgaged real estate ownership
- tax-related
- valuation
- depreciation and write-offs
- deductions for all real estate operating expenses
- repurchase tax consequences at end of lease
- double fees
- double taxes (property taxes) etc.
- tax consequences of an extension leasing at the end of the lease
