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Buy or lease?

Buy or lease?

BUY OR LEASE COMMERCIAL PROPERTY?

Maybe your new lease agreement has a substantial rent increase or perhaps your business needs to expand to meet its growth potential – the option to buy a commercial property is an opportunity many business owners have to decide upon. Whether it’s a retail, office or industrial space, here are some benefits of buying and leasing to help you in your decision making process.

WHY BUY?

  1. The property becomes one of your major business assets and provides capital growth if commercial property prices rise
  2. Being a landlord, you have the freedom to decide how the property is developed
  3. The security of tenure allows for long-term planning and not having to renegotiate new lease agreements
  4. In most cases you can borrow against your equity which is tied-up in the property
  5. You can claim depreciation of fixtures and fittings through building allowance deductions

WHY  LEASE?

  1. Provides you with more available capital to use elsewhere in the business, such as with new products or services, or staff hiring
  2. Allows you greater flexibility and freedom to choose a property that matches your desired location and accessibility needs
  3. Responding quickly to business needs as they change, especially if you want to move to larger premises or sublet if the business closes down
  4. More time to concentrate solely on running your business rather than managing your commercial investment
  5. Reduced risk as leasing is not a long-term financial commitment, which can be vital if your business is just starting out

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