People who are in small enterprise business, often have a doubt, whether should they lease or own property to expand business. If someone asks this question to the real estate developer than the answer would be both have its benefits and drawbacks that are important to look upon.
Reason to buy your own property:
Owning your property, might become the better choice for you considering the following factors
- As being the proprietor, you are not answerable to any landlord.
- You are establishing ownership and long lasting wealth.
- If you face downfall in business, you can lease the property to tenants and earn.
- Small entrepreneur can buy property with 10% of the down payment.
- There are some govt. schemes such as low interest rate, tax advantages which might benefit the owner.
Reason to take property on lease:
There are some reasons that make sense in taking commercial property on lease for your business
- Your business is developing and you have no idea how fast you might outgrow the property.
- There is instability in market conditions, so committing to a lesser time of lease will ease your mind.
- Leasing is the best option when you have to grow your business and you don’t have amount for down payment.
- Your company is still new and at developing phase.
- You need a build up space in a short period of time.
- You can have favorable terms & conditions.
Make a decision
There is no apt solution on the discussion weather you should buy or rent. Each aspect has its own perks as per your current requirements. It is important to consider your business goal, growth and market before investing. If you prefer to buy or rent a property just give a review on the future plans, rising of market value of business, have a key note on downfall of business. Keeping in mind all these things and considering it with type of your business will help you to make appropriate decision.