Since we’re going through the process of finding better, bigger office space, I’d thought I’d post along the way on some of the key challenges and decision points.

Buying or leasing can be a challenging one for many practitioners. Interestingly enough, I think it’s more challenging later in your career, when you have the cash to consider buying, and the experience of pouring money into someone else’s real estate, but it’s a question that everyone likely faces several times during their professional lives.

It’s easy to get caught up in complicated financials – depreciation, tax rates, etc. – but there are some easier questions that can help make the decision.

How’s your cash flow?
Have you got (or can you get) the cash for down payments, renovations, taxes and the multitude of other costs associated with buying? When you lease, you often spread the cost of getting your office “patient-ready” over the course of the lease. When you buy, you’ll likely need more cash up front.

Do you want the responsibility?
It’s more work to own your own joint. You’ve got to deal with your own repairs, lawn care, snow removal, parking lot upgrades and plumbing emergencies. Are you up for it, or would you rather have the owner/superintendent of the building you lease in take care of it all? Most of us would rather not deal with this stuff, but having someone else manage it comes at a cost. Remember that most real estate owners aren’t in business to lose money; everything that takes away responsibility from you is likely being paid for by…you.

How’s your growth?
How do you see your practice growing over the next few years? Do you see yourself adding associates, colleagues, partners or other professionals, or will you be more of a one-person show? If you’ve got a lot of growth planned, you’ll either need to plan to move again, or get more space than you currently need.

Moving is more complicated and expensive when you own your own space, so if you’re buying, you may want to envision your practice over a longer time frame than the typical five-year lease.

How important is predictability of expenses?
It’s easy to be surprised with leasing or buying. You can get an awful shock in five years when you renegotiate a lease under different market conditions. But you can get an equivalent shock when you need to replace the roof on your office building the first year. I find leasing tends to be more predictable in the short-term. Buying tends to have a lot more surprises up front, but you can monitor your long-term costs by keeping an eye on mortgage rates and the condition of your property.

Does real estate turn you on?
For me, this is critical. Do you want to own your space? Do you get a thrill from knowing that you’re building equity in something, rather than paying for someone else’s building? Do you feel a sense of pride in owning and caring for your own place?

What business do you want to be in?
I think this is the big one. When you buy an office for your holistic or alternative health practice, your essentially entering the real estate business, even if it’s just with one building. Over a career, that decision can make a huge difference – paying rent to someone else for 20-30 years is not making you wealthier. But if you just don’t want to be in the real estate business, then maybe you’re better off leasing and focusing on your practice.

In the end, I think it’s ultimately an emotional decision for many. The only caveat is this: be smart, not scared. If the money’s similar, it’s really not a big deal owning your own place. Even buying your first home can seem scary, too, but after it’s done you realize it wasn’t so bad after all.