For many General Practitioners (GPs), running a practice isn’t just about patient care—it’s also about making sound business decisions. One of the biggest decisions GPs face is whether to buy a property for their practice or lease it.

Each option has its own advantages and challenges, and choosing the right path can have a significant impact on your financial future, operational flexibility, and long-term professional goals.

Buying Property: The Pros and Cons

The Benefits of Buying:

1. Equity Building – When you own the premises, your repayments build equity in a valuable asset over time.
2. Long-Term Stability – No risk of lease expiry or unexpected rent hikes—you're in control.
3. Freedom to Modify – You can renovate or reconfigure the space to suit your needs without landlord approval.
4. Potential for Capital Growth – The property may appreciate, providing a solid return on investment down the track.

The Challenges of Buying:

1. High Upfront Costs – Property ownership requires a significant initial investment, along with ongoing expenses such as maintenance, council rates, and insurance.
2. Illiquidity – Unlike cash or shares, property can’t be easily sold if you need to access funds quickly.
3. Market Risk – Property values can fluctuate; if the market dips, your investment may be worth less than anticipated.

Leasing Property: The Pros and Cons

The Benefits of Leasing:

1. Lower Initial Costs – Leasing generally requires less upfront capital, freeing up funds for equipment, staffing, or marketing.
2. Greater Flexibility – As your practice grows or changes, it’s easier to relocate or scale up.
3. Fewer Responsibilities – Landlords are typically responsible for major maintenance, building insurance, and structural repairs.

The Challenges of Leasing:

1. No Asset Growth – Rent payments don’t build equity, meaning you’re not creating a long-term asset.
2. Rent Increases – Leases often include annual increases, and costs can rise substantially when renegotiating or renewing.
3. Limited Control – Making changes to the space may require landlord approval, which can restrict how you operate.

What Should GPs Consider?

Before deciding whether to buy or lease, it’s crucial to think about:

• Affordability – Can your practice comfortably handle the financial commitment of ownership?
• Location – Is the property easily accessible for your patients, with room for growth?
• Succession Planning – Will the property be an asset you sell or pass on later?
• Market Conditions – Are commercial property values and rental yields favourable in your area?

Engaging a real estate professional who understands the medical property market can be incredibly valuable. They can help you assess options, negotiate favourable terms, and secure a property that aligns with your goals—whether that’s owning a bespoke clinic or leasing a flexible space.

Final Thoughts

After 20 years in commercial property, I’ve seen how the decision to buy or lease can shape not only a GP’s practice but also their financial future. There’s no one-size-fits-all answer—but with the right guidance, you can make a confident, informed choice.

Looking for property insights tailored to medical professionals? Let’s chat.
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