If you are planning to make an investment in real estate, and the experience behind them, starting with a new one, you may be obstructed with a decision: to buy or to rent it out. When making this decision, it is necessary to take into account the size of the projected earnings, growth rate, and the regulatory requirements that apply to our business. Buying a real estate property will help you save the cost of a certain amount of time, as well as to take advantage of a rise in real estate prices, but you're going to need more cash yet when you rent a place for business purpose.
The benefits
of having a commercial property on lease
- Cash
Flow: The cash flows from a purely economic point of view, the commercial space for lease is a good
option. If you have a number of new companies and the income from them, only increases,
then leasing is your best option. In case of a lease, your down payment is
going to be limited to the security deposit and the first month's rent. In the
case of a purchase, you are spending, and the value of the property, or at the
very least a down payment for the loan, that is usually a pretty high level.
- Property
Maintenance: In many cases, the responsibility for the maintenance of the
property is of the landlord. If you do not want to take care of the maintenance, and
just want to focus on your core business, then commercial retail property leasing may
be the best option. The maintenance costs are lower if you lease a commercial
property. But if you have a property then it may be significant in costs in
order to maintain the structural strength of the building, along with the
day-to-day repairs.
- Reclaim
Flexibility: You might wish to retain the flexibility and don't get tied up
in one place for a long period of time. Commercial retail space leases also
provide for a greater range of movement than that of a direct purchase. Moving
to a new location, making a commercial property available for purchase
might not be a very good choice, especially if real-estate prices are rising.
- Falling
Locality Prices: There are localities that are able to witness a decline in
the market value of a property. If you are on a property in accordance with the
requirements set out in that locality, it is recommended to lease the property
rather than buy property in such a location.