One problem that a lot of small businesses go through is deciding whether or not they should rent or buy an office space. If you’ve come face to face with this dilemma, you have to consider a few factors that go with buying or renting an office.
Continue reading to learn reasons that will help you decide to buy an office space.
You’ll Have a Set Location
Purchasing your own property means having a permanent and secure place for your business. In addition, you’re immune to the must-move clause meaning you will never have to worry about being leased out. You’ll also have peace of mind of not having to be concerned about where to go after the lease ends.
Owning Property is Long-Term
Renting a place is considered to be a short-term solution while owning the property is a long-term investment. If you have solid capital and long-term plans, you’re buying a space as opposed to renting. The property will pay for itself, which means you’re able to make any and all repairs needed without having to get the green light from your landlord. For instance, in your own space, you can hire qualified roofers to make immediate repairs, if needed. Long gone are the days of you hoping the landlord responds in a timely fashion.
Take Advantage of Segregation Depreciation
One of the biggest benefits of owning your own property is that you can use a tax strategy called “cost segregation depreciation” to your advantage. Let’s say you bought or even built property and you ended up paying over a million dollars. Your business might be able to benefit from the tax savings by doing a simple cost segregation study.
Fixed Costs
If you’re looking to have fixed costs, then buying the property is your best bet. A lot of businesses hold a lease that lasts up to 15 years, however, they’re at the mercy of a landlord. Landlords have a tendency to change the cost to whatever and whenever they want. In other words, your lease will increase after a few years and it’s something you cannot control unless you’re the owner. While costs like occasionally hiring roofers or gardeners may be your cost, the equity you get outweighs these costs.
Buying and owning a property is a lot different than just renting it. Of course, that isn’t to say, that renting isn’t a bad choice. In fact, the choice of buying or renting is ultimately up to you. Both buying and renting come with their benefits and flaws. You have to decide which one will best suit your needs and wants.
