Your home-based business is growing—congratulations! If there’s a downside, it’s when the
growth strains your home’s capacity to such an extent that you’re contemplating buying a larger house to accommodate it. However, this may be a good idea; after all, even if the new home is more expensive, you are generating more income now. And, if you designate more areas of your home exclusively for your business, you may be able to benefit from larger tax deductions!
Before taking the plunge, though, do your research and seek out professional guidance
from your real estate agent, accountant, and tax expert. And, since getting a home loan as an entrepreneur can be a bit more challenging than it would be for a salaried, W-2 employee, it’s best to be prepared before you try to get approved for a mortgage.
Being able to move up into a new home that accommodates your business represents an
exciting step in your entrepreneurial journey! - Marcus Lansky
Combining Your Criteria
As a home-based entrepreneur, you need to combine the qualities you want in your home for both your business and for your personal and family life. Here are a few things to consider:
1. The ease with which you can keep your business space completely designated for
work. This is an important criterion of the IRS for the home office tax deduction, so
make sure it’s not comingled with your household budget and accounting activities. If
you can’t find a home with two suitable office spaces, Architectural Digest suggests
creating a small household office nook in another area, such as the kitchen or master bedroom. Or, if your yard space, HOA, and building codes allow, use a separate pre-
built shed or building, or get an estimate on adding on office space.
2. Proximity to business and family needs. As an entrepreneur, you may want to be
close to shipping services, clients, or business partners. As a parent, your life might be
easier by proximity to schools or medical facilities. You may be able to mitigate some
inconvenience with each by using delivery services, videoconferencing, and online
ordering, so look at options for each as you scope out your locales.
3. Days of double duty. If you have small children, you may have days during which you’ll
have to combine work with childcare due to illness, vacations, or other school breaks. If
this is a common scenario, an interior home office near family living spaces may be
necessary for a few years at least.
4. Public intrusions. If your business requires in-person meetings in your home from
clients, vendors, or partners, having at least a separate entrance to your office or
workspace might be a priority. You’ll also have to consider parking, and whether your
business traffic would be sufficient enough to warrant concern from your neighbors or
violate any neighborhood zoning restrictions.
Getting Into the Process
Assuming you also need to sell your existing home, working with an outstanding real estate brokerage firm, such as Urban District Realty, LLC will help you with both the selling and home-buying process. Let your real estate agent know the criteria for your new home, and they’ll get to work. Additionally, getting prequalified for a mortgage is particularly important if you are searching in a tight market with limited available inventory. The timing of when you get your mortgage may also be critical, as locking in a low interest rate now can save you thousands of dollars a year.
Productive Paradise
Being able to move up into a new home that accommodates your business represents an
exciting step in your entrepreneurial journey! If business is booming, contact Urban District Realty, LLC to get started with your home upgrade!
About the Author: Born with a severe spinal condition, Marcus Lansky took the challenge to be able to walk again. With the will and aid of numerous individuals from the medical field and a whole lot of cheerleaders, he was able to take his first steps and take on the world. He then created his site, Abilitator (abilitator.biz), as a way to reach out to those who are disabled and show them that becoming an entrepreneur is a goal they too can achieve.