Buying a commercial property is not easy and the prominent reason for the same is an expensive cost. The main factors to consider for buying a commercial property are its location, scale of business, nature of business, future growth and income. Many prospects feel confused about buying or leasing a commercial property and if you are also one among them then this blog post is a must-read:
Benefits of Buying a Commercial Property:
Possession of Property is the main reason behind buying a commercial space. This is a good option as you can design the entire workplace according to the requirement and future possibilities of business expansion. Another important thing is flexible work timing as the leased properties have their limitations but being an owner of a purchased commercial property you can work in a hassle-free and comfortable environment even during the odd hours.
Minimalistic Rental Outflow is another important aspect to consider while buying a commercial space as a lot of money from your pocket is shed to pay rent and security deposit. This saving is hugely beneficial as it can be used for future investment or any other important purpose.
Strategic Location is of utmost importance as commercial property is the biggest income source and thus area plays a pivotal role as client-base and nature of business must click together. A wise decision is to buy a commercial property in a location where regular income can be yielded.
A rise in Property Price is another benefit of owning a commercial property in comparison to a leased asset and this is because a purchased asset offers an increased return on Investment [ROI] whereas a leased commercial property will fetch more money from your pocket as an increase in the rental amount. The proposed infrastructure witness hike in commercial properties as access to the same becomes much easier.
Tax saving is another important implication as a purchased commercial property makes you eligible from tax rebate such as the loan for buying a property. However, the tax benefit cannot be availed on the rent paid.
Benefits of Leasing a Commercial Property:
Manage cash flow as it is hugely important for the startup companies and also for the businesses that have started in a small budget and are currently in the process of business expansion. Leasing a commercial space makes a person deposit security for a said period and timely rental payment set you free from various expenses related to the commercial asset.
Easy property maintenance is another advantage of leasing a commercial property as the landlord is responsible to fix all the issues in a property. This makes you pay less maintenance cost while being an owner means all the maintenance cost has to be borne by you and it asks for a good amount of investment.
Better Business Expansion opportunity is another benefit of leasing a commercial property as you can operate in any locality according to the business plan and requirement. However, an owned commercial property bound you to one place and moving out from the same is not easy.
Non-availability of loan is another factor that makes leasing commercial space a smart option as a low credit score restricts the banks from offering a loan. In short, a not so good financial condition allows you to focus on business in case of leased commercial asset.
Dip in property price can easily be dealt with as the rental amount is likely to face a cut-down. You are protected from incurring a loss on a commercial property resale.
Also Read : Tips To Find Buyer For A Commercial Property