ABSTRACT

In order to own a share of the property, a partner would have to raise the capital. This is likely to be a loan with interest payments, and when one compare this to house mortgage costs it appears witheringly expensive. When a partner leaves, his/her share can be bought by the other partners or by his/her successor at the current market rate, and they will then be responsible for rent payments. The leaving partner, on selling, will get back his/her original investment plus any growth due to property price inflation. In some practices, some partners own the building with their associates taking no role in it, depending on their personal feelings about financial risk. Leased premises are less of a financial risk, as the cost of the lease will normally be covered by payments from the health authority under the rent and rates scheme.