May 17, 2022
Business Buildings: Renting or Buying?
Whether you are planning to start up a business or whether you need to expand your offices, you have two options: renting or buying a business building. While renting is more convenient on the short term, making the effort to purchase a building can be a better idea as long as you plan to stay in the business for the long run.
Nevertheless, you should pay attention to every aspect involved in such an investment, discuss with the right people and consider all advantages and disadvantages before making the final decision. Once you have decided that purchasing is the best option for you, don’t make a hasty choice regarding the building you want to buy, but try not to miss incredible chances just because you cannot make up your mind either.
The reason why owning a business building is preferable to renting one is more than obvious: instead of spending significant sums of money on rent, you can invest it in one of your potentially most important assets. More than that, owning the place where your everyday business activity takes place can contribute to creating a good and strong image of your company on the market.
Both your potential customers and investors will understand that you plan to dedicate yourself to the business for a long while, that you are serious and that the company has a steady situation. Your employees will have a much better sense of security and belonging as well. And happy and confident employees can bring only benefits to a business.
However, it is important that you do have a steady situation when you decide to make this step. In the case in which you have the capital from the start, the situation is simpler: worst-case scenario, you sell the building and perhaps even make some profit from the transaction. However, you should consult real estate specialists in such circumstances as well and make sure that, at least from what can be foreseen according to the current situation, the price of the building is not going to drop.
But if you had the capital, you probably wouldn’t be reading this article. So, if you have to make a loan, consult your accountants, financial specialists and managers and make a comparison between your income prospects and the expenses you would be facing if you go for the purchase. Remember that there are not only the installment payments that you have to consider, but also maintenance costs, insurance, taxes and so on.
All in all, buying a business building is preferable to renting one as long as your business prospects are good. Nevertheless, you have to be realistic and understand that unexpected problems can occur all the time, and finding the best property can be done through specialized websites, such as http://businesses-properties.com/buying-buildings/. Bearing this in mind, it would be better if you took extra measures to protect your business from eventual problems related to the building purchase.
There is one trick that can help you diminish such risks: create a separate enterprise – a limited liability company, for instance – and make the purchase in this second company’s name. Then, you can rent the building from this other enterprise and, thus, protect it from garnishments or other unpleasant situations. Of course, if you plan everything carefully, there are small chances that such problems appear, but caution can do no harm.
1. Rent a home or buy? Depends where you live
2. Gap between Renting and Buying Is Becoming Smaller
3. Gap between renting and buying costs closing in US cities
4. Young people still renting instead of buying
5. Plemon: Five reasons why renting can be better than buying
6. Cost of buying is £124/m cheaper than renting