Having an office to take care of your business meetings, client dealings, inventory, and other aspects is a must. Scouting for the perfect office takes time and hard work. You can’t just go with the first one you see. You have to take into consideration some things such as the location, budget, nature of business and such. Hiring a realtor is probably the best move you can make when looking for office space. They will have the right knowledge about real estate in the area. Gerald Eve’s London Knowledge will help you scour the city for the right office for your business. But should you lease or should you buy? Here are some pros and cons of leasing and buying that can hopefully help you in your decision making.
- You get to rent in an area considered as a prime location. If your business is a restaurant or a store, then an excellent location will benefit your business. It will also be more affordable to lease in a prime area for your business and office.
- You get to have more working capital as you don’t have to shell out a lot of money on leasing an office.
- You have more time on your hands to focus on running your business, as buying a property requires time to take care of it.
- Leasing will subject you to rent increases each year. The lease will be much more expensive when the contract expires.
- All the money that you pay for space is for the benefit of the less or. There will be nothing for your business to take.
- Fixed costs of the mortgage allow you to forecast your business’ expenses throughout the years.
- You get to enjoy tax deductions in the form of property taxes and mortgage interest.
- You can have extra income if you have extra space that you can rent out to another business.
- Real estate appreciates over time. Buying an office space will allow you to sell it in the future. The proceeds can fund your retirement, so you live comfortably.
- You have free rein with what you want to do with the space. Usually, lease contracts stipulate restrictions on what you can do to the property in terms of renovation.
- There is not much flexibility. If your business continues to grow over the years and it requires more space to become more operational and accommodate new equipment and staff, your property may no longer be adequate. You may need to sell it and look for a bigger space.
- The upfront costs will be significant and will take a chunk of your capital. Besides the down payment on the mortgage, you may need to spend on renovations and improvements.
Once you find the right office space that will hold your business, next comes the personalisation of the area. If there is no more budget for an interior designer, the next best thing to do is pool your efforts and pitch in ideas for the office design. You can also look at ideas on the Internet and use them as inspiration.