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?
- The property becomes one of your major business assets and provides capital growth if commercial property prices rise
- Being a landlord, you have the freedom to decide how the property is developed
- The security of tenure allows for long-term planning and not having to renegotiate new lease agreements
- In most cases you can borrow against your equity which is tied-up in the property
- You can claim depreciation of fixtures and fittings through building allowance deductions
WHY LEASE?
- Provides you with more available capital to use elsewhere in the business, such as with new products or services, or staff hiring
- Allows you greater flexibility and freedom to choose a property that matches your desired location and accessibility needs
- Responding quickly to business needs as they change, especially if you want to move to larger premises or sublet if the business closes down
- More time to concentrate solely on running your business rather than managing your commercial investment
- Reduced risk as leasing is not a long-term financial commitment, which can be vital if your business is just starting out