Buying Versus Leasing Office Space – What Should You Consider? Reviewed by Momizat on . So your company is doing well or you simply want to open a new business and are thinking about office space. You can obviously buy it or lease it. Based on your So your company is doing well or you simply want to open a new business and are thinking about office space. You can obviously buy it or lease it. Based on your Rating: 0
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Buying Versus Leasing Office Space – What Should You Consider?

So your company is doing well or you simply want to open a new business and are thinking about office space. You can obviously buy it or lease it. Based on your current situation, one of the option is better. Based on a discussion that we had with professionals at Today’s Growth Consultant, we came up with the advantages that both options bring to the table. This will help you to choose something with ease. If you need to look for more information on Today’s Growth Consultant reviews, the internet is practically full of them.

Buying Versus Leasing

Office Space Buying Advantages And Disadvantages:

Main Advantages:

  • Fixed costs can be paid through commercial mortgage locking. This offers more concrete analysis option when referring to annual costs.
  • You can easily create more income by simply renting out a part of the office space that is not used.
  • Tax deductions are available for business owners that own their office space.
  • The office space can be treated as an investment property, thus easily getting you in the real estate market.

Main Disadvantages:

  • Lack of flexibility.
  • When you grow, you will need to sell the property.
  • Upfront costs are really high. A large down payment will be necessary, together with extra cash being needed for appraisals, loan fees, building inspections, property improvement and more.

Office Space Leasing Advantages And Disadvantages:

Main Advantages:

  • The business address can be great and you pay less.
  • The capital will not be tied in real estate so resources can be directed towards market opportunities.
  • The focus can be put completely on growing a business. No challenges associated with the real estate ownership will have an impact on you.

Main Disadvantages:

Renting or leasing obviously has some disadvantages. When you opt for this options, there is no property equity that you can take advantage of in the future. At the same time, it is possible to be faced with an annual rent increase. The higher rates can easily appear when a lease expires.

What Should You Choose?

At the end of the day, this is definitely something that is subjective. You will need to make the choice. However, in the event that you cannot actually afford the upfront payment or you do not really know the amount of space that the business needs in the future, think about renting or leasing since this offers a lot of flexibility. In the event that you can deal with the extra financial burden, you can go for the buying option.

On the whole, everything boils down to two things: your current finances and the expected business growth you may be faced with. It is quite difficult to analyze this and choose a really good option. If you feel that you do not actually know much about what you should choose, opt for the services of a professional business advisor that can so easily help you out. Have patience since properly understanding what you are faced with at the moment will aid you to choose a great option for your business.

About The Author

SEO Cunsultent

Muhammad Aamir is an avid learner and online marketing consulting. Including guest blogger, blog posts sailing and link building. Social Profiles: Twitter, Facebook, Google Plus Contact: muhammadaamir2013@gmail.com

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