With the exception of a home-based office, a lot of startup business owners have to make the decision of whether they should purchase office space or rent it.
Why you should buy
If you know that you’re not going anywhere anytime soon, and you find the perfect space and for a great price, you might want to consider purchasing. In the end, buying property can often save you more money when compared to renting.
Buying any type of real estate, including commercial property, is an investment. As with any real estate investment, it can pay off if you wait until the right time to sell or lease it out, so this is another advantage of purchasing your office space.
You can also alter the office space as you see fit. If you want to drastically remodel the look of your workspace, you don’t have to ask a landlord for permission.
Why you should rent
When you’re just starting out and your business hasn’t generated much revenue, it can be difficult to afford a commercial space. Compared to buying, costs for renting are minimal upfront, and leasing a space won’t require a large down payment or taking out a loan. Brand new companies can often benefit from renting in the beginning so they can use their available funds to help grow the business.
If you’re not sure about staying in your current city or you might want to expand to a bigger office, renting gives you the freedom and flexibility to do either of those things when your lease is up. Yes, when you own commercial property, you could always put it on the market if your circumstances ever change, but this can take months (or even years). It’s not as easy to pick up and leave then if you were leasing your space.
Just like with renting a home, you don’t have to worry about basic maintenance and upkeep or repairs if something goes wrong. Repairs can be costly and burdensome, but if you’re renting, this is something your landlord will take care of.
Do you need cash now for the start of your business? Peachtree Financial Solutions may be able to help! Whether you need the money to buy office space or fund other business operations, we can provide you with a lump sum of cash by buying some or all of your structured settlement payments. To learn more about what we do and for your free quote, contact us today.
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.