One widespread dilemma that a lot of independent businesses face is – should they opt to buy or rent a commercial space for their business. If you are one of them, stuck in the dilemma of buying or renting, then it is important to pay attention to a lot of factors that goes into the decision. In this blog, we are summarizing a few views of the experts, who believe that it is better to buy retail space in Noida instead of rent.
Buying will give you location, without a move-out clause– buying your own office space means, a permanent and secure place for your business that can’t be taken away from under you with a move-out clause. This expels any present or future tensions you may have of where to move the entire business setup every time the lease period ends.
Owning a property is a long-term investment – We all know the fact that renting is short-term fix and buying is a long-term investment. If you have plans of staying in a same commercial property for years to come and with that you have solid capital, buying is the option you should pick. Buying, as we said is long-term investment, which will pay its reward in time.
Business owner can build equity with investment in property – Having an equity in real estate makes it easier to expand your business, as it is easier for you to get your loans approved, which every business need for its growth and expansion.
Great way to secure the costs – Buying a property will help the owner to keep his costs fixed. The businesses who opt for leasehold property, usually gets for a fixed period of time and always remain at the mercy of their landlords as to the terms for the new lease. Usually, there is always increase in rentthat as a tenant you cannot control – for that you need to own a property and put breaks on increasing costs.
Investing in real estate gives you tax benefits – For business owners, depreciation and writing off costs, as your commercial real estate increase in value eventually is a huge monetary benefit. In contrast to renting, the money spent on buying a property is not deductible, however you can earn back the benefits through annual depreciation deductions.
You can earn profits from property price appreciation –For a stable business, which is neither relocating nor expanding, owning a property is a great decision to make because as an owner of the property you will gain from the increase in real estate value. Again, thinking about the future, it will give you herculean profits when you choose to sell your commercial space by the time you opt for retirement.
Make cost-effective, energy efficient renovations –Owning a piece of land or office space means you can do whatever you want to do. For the same power of decision-making in hand, it is best to invest in energy efficient renovations that will cut utility costs and will add to the business profits. For example – you can switch to the HVAC system, energy efficient lights, solar panels, insulate the property. You cannot achieve such renovations and authority with the leased property.
No need to tolerate landlord’s restrictions and tantrums – Authority over property is the best perk of purchasing a property. Just mentioned above, you can do whatever you want to do without being answerable to anyone or to bow down to landlord’s restrictions. You, your team, your customers and suppliers, who so ever is associated with your business can use as much parking space as they need, stay late or work late hours or even work on weekends, holidays or festivals, play music or throw office parties – without having to ask for landlord’s permission.
When choosing to purchase or lease office, owning your own property for your business can be extremely beneficial, particularly in a situation where you have solid capital to pay for the down payment. There are many more reasons that back this decision of owning a property. If you are still deciding on whether to buy or rent a commercial space for your business read the above explanations.