your medical o˜icecondo is ahealthy investmentdev.arcreactions.com/medivest/wp-content/uploads/2014/10/... · 2014. 10. 22. · Buying your medical once condo can be good for you.

owningyourmedical o�icecondois ahealthyinvestment

www.medivest.ca

20%

PRE SOLD

In Calgary, more than 95% of medical o�ice space is leased. Unless you are one of the few medical and health services practitioners who have chosen the benefits of investing in their own o�ice space, your hands are tied when it comes to how your building is maintained and managed, you su�er the inconvenience of badly designed spaces just to be in a convenient location, you pay more to ensure secure parking for your patients, and you lose money

each time you make leasehold improvements to a building that you don’t own. Once you make the leasehold improvements, and your lease term completes, your landlord raises your rent!

Most medical and healthcare practitioners are missing out on the bene�its of owning their own o�ice space: can you a�ord to be one of them?

Give your practive A NEW LEASE ON LIFE

Owners enjoy 30% lower operating costs

Medivest Professional Centre Inc.2500 sq. ft. Purchase vs. Lease Scenario

PURCHASE OPTION (2ND FLOOR) Base Building + $50/sq.ft. ImprovementSquare Feet 2500Parking Stalls 15Asset Cost Condo $425.00/sq.ft $1,062,500.00 Parking $35,000.00/stall $525,000.00Total Condo and Parking Stall Cost $1,587,500.00Add Improvement Costs ($50/sq.ft.) $125,000.00Add Base Building Finishing @$5 per sq. ft. $12,500.00Total Asset Cost $1,725,000.00New First Mortgage (75%) $1,293,750.00Cash to Close (25%) $431,250.00ANNUAL SERVICING COSTS Mortgage Payment (4% 25yr Amort) $119,301.48Parking Recovery Patients/Staff ($200/stall/month) $(36,000.00)Annual Condo Fees at $11.00/sq.ft (Operating Cost) $27,500.00Total Annual Carry Cost $110,801.48Total Monthly Cost $9,233.46Total Carrying cost per sq. ft. $44.32TYPICAL LEASELeasing Expense $26.50 $66,250.00Operating Expense $16.50 $41,250.00Parking Expense $200.00 $36,000.00Total Annual Expense $143,500.00Total Annual Expense per sq. ft. $57.40 PURCHASE VS. LEASE COMPARISON Rent Reduces Mortgage over 5 Years (Principal Reduction) $167,490.30Sales Price Appreciation @ 3.25% Annually for 5 years (17.34%) $299,115.00Total Yield and Equity Gain - 5 Years $466,605.305 Year Equity Gain on Purchase $466,605.305 Year Equity Gain on Lease - After 5 Years Purchasing vs. Leasing Difference $466,605.30ANNUAL COST TO OWN VS. LEASE Annual Cost to Own $110,801.48Annual Cost to Lease $143,500.00Annual Savings Advantage over Leasing $32,698.52Annual Savings Advantage over Leasing as a Percent 30%

There has never been a better time to purchase your own medical o�ice condo. A�er 20 years of being a tenant, you will have nothing to show for all the money you have invested in your o�ice space whereas, if you were to buy or mortgage

the space, at the end of 20 years you would have equity, the benefit of the improvements you have made to the building, and the appreciation in land value. Despite market ups and downs, real estate is always worth something.

Your financial planner would recommend that you lease depreciating assets such as an automobile, and that you purchase appreciating assets like real estate.

Now is the time to get out of yout leased o�ice space.

WEALTHCARE:Customize your medical condo

to suit your needs and watch it appreciate in value.

[email protected] | www.medivest.caCall: 403.830.5771

As a medical and health services practitioner, your needs are di�erent to those of other businesses. Leasing o�ice space that isn’t ideal means funding improvements out of your own pocket. There is an alternative, one that gives you purpose-designed o�ice space in the perfect location – and puts money back into your pocket.

MEDIVEST Professional Centre is at the forefront of medical realty development. This new, four storey medical o�ice building brings together varied practitioners, each in their owned space, sharing the benefits of a medically themed building. The custom-designed building is dedicated to meeting the specific needs of healthcare practitioners such as yourself, and your patients.

Talk to a representative to find out more about your mortgage options, and subletting your existing space.

GREAT REASONS TO INVEST IN AMEDIVEST MEDICAL CONDO4Future-forward investment opportunities keep up with advances in healthcare.Owning your own medical condo gives you the fexibility to makethe changes you need, when you need them.

1.Buying your medical once condo can be good for you.Owning a medical condo in a building designed exclusively for healthcare practitioners means fewer headaches for you and your patients. Already built with your unique needs in mind, any improvements simply add value to your investment.

2.Grow the financial side of your healthcare business.With all the business and tax challenges predicted in healthcare management, isn’t it comforting to know that there are opportunities for wealth development? You could sell your medical condo when you retire, or continue to own it and collect rent from younger physicians. With a bit of forward thinking you can realise some down-the-road income potential.

3.You already know that you are an excellent tenant With owning, you become the tenant and the landlord and start paying yourself.4.

278 Parking Stalls6 stalls/1,000 sq. �.All parking underground, heated & secured

Contemporary medical mall concept on main floorProfessional medical o�ice condos for saleUnique investment opportunity for the Health CareIndustry Professional

Medical O�ice CondosPrime Central north Calgary location72,000 sq.�. of medical space on 4 floors

Contact us today to get more informationon the benefits of owning your own medical condo in the

Medivest Professional Centre

Call: 403.830.5771 | [email protected] | www.medivest.ca