November 19, 2015
The Pros & Cons of Renting or Buying an Office Space
One of the things that a business owner should consider is whether to buy or rent an office space. It is one of the first and major decisions you need to make in order to start your own business.
While it is important to know if leasing or purchasing an office space will be advantageous to your business, it is still best if you get an advice from the experts. Simply look for a reliable and experienced financial planner or commercial real estate professional to guide you and simplify the whole process for you.
Thus, here are some of the pros and cons of renting or buying an office space:
Your business should be managed properly by the experts or all by yourself. Once you own an office space, you have to make sure that it is well-managed at all times. Depending on the type of business you have, you need to see to it that your property is monitored and taken care as it should be. Moreover, if you have long-term growth plans for your company, then you will need better property management all the more.
One thing you need to keep in mind when deciding to own or lease a commercial property is its flexibility. Apparently, when your business is relatively new you would want to lease in the meantime, to obtain great tools for your company. You may look for rentals from McGrath once you decided to opt for leasing than purchasing. Be that as it may, if your business is already stable, then buying your own space is necessary for you to meet all your future needs.
If you are considering buying your own office, then you are expected to make a down payment of 10% to 25% of the total cost. On the other hand, if you are just about to rent a space, then you would not need to make a down payment as much as that.
When you own an office space, you get to take advantage of its value in the long run. Through market appreciation, you are able to produce long term increase in value. However, you won’t be able to get this benefit when you simply lease a space.
There are countless advantages and disadvantages of renting or buying your own office space. Nonetheless, it is necessary to take into consideration those abovementioned matters in order to make your final decision. As long as you know what’s best for your business, then you are on the right track.
On the whole, it is still up to you to settle on what you think is essential for the growth of your business. Hence, by owning your office space, you will have more assurance and stability. You will then have a physical location that truly belongs to you. In addition, buying is actually cheaper than leasing. Though it may be costly at first, for you are going to give out a large amount of money, still it will be a worthy investment in the long run.