If you own your own business, you face a unique question that most people will never think about: Should you continue to rent your company's commercial property, or buy your own? There are pluses and minuses to either option.
First and foremost, you will need to consider your company's bottom line. Buying a good-sized commercial space is not a small investment, and you'll need to think about the size of your deposit, the impact of paying down the loan each month and so on, according to Smart Company. However, given that you are also paying a sizable amount to the property's owner every month if you rent, it might take some number-crunching to figure out the best path forward.
Of course, the cost of occupying a space is only one of the expenses you face as a business owner. You will also have to think about the potential need for repairs and maintenance on your property, for instance. If you rent, the property owner is likely responsible for it, whereas if you own the site yourself, that can be quite expensive as an annual line item.
Another thing you might not think about much but which can impact long-term costs is the fact that property values tend to appreciate, and the property can provide some return on investment in the long run. However, Biz Filings also noted that if your company is evolving somewhat rapidly, you might not necessarily want to marry yourself to a site that you could outgrow within a few years.
Of course, if you own the property, you may be able to make modifications to it as necessary so that it continually meets your needs, and you probably wouldn't have as much autonomy or flexibility on this front if you were only renting the space.
Whenever you are thinking about buying or selling a commercial property, you should enter into that process with a trusted professional by your side. Partnering with the real estate experts at Ray White Surfers Paradise gives you access to critical guidance any time you need it, and we can shepherd you through the process whether you are a first-time buyer or expanding your portfolio. Get in touch with us today to learn more.