Which Comes First? Buying a Home vs. Buying a Practice
Welcome to the third conversation in this series with David Chong Yen and Eugene Chu, Chartered Accountants from DCY Professional Corporation in Toronto. David and Eugene have kindly agreed to record a series of videos that offer advice to new graduates and practicing dentists on the most common accounting and tax questions they are likely to face early in their career.
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Until next time!
Real estate or buying a practice which is the better investment for new dentists?
There was a period of time in past few years that an argument could have been made for either, but I have always believed long term the best investment you will ever make is in what you know best which is dentistry.
Your dental practice is your fishing rod, it’s what will allow you to catch fish (i.e. your house, your car, your savings and investments).
So you would suggest then that buying a practice should come before a house?
I believe in getting your fishing rod before getting fish. Buying a house is sort of like an anchor, it imposes a geographic limitation on where to buy a dental practice. If I’m looking to get a fishing rod, I want the best fishing rod possible and not to have any restrictions on what fishing rod I can get.
Practically, its easier to find a home near your practice than a practice near your home. At any given time, there may be thousands of homes available for sale, but only a handful of practices, which makes buying a home easier than buying a practice.
Full Interview (8.02″)