How to Decide Whether to Rent or Buy Commercial Property In 2019

You should extensively understand what it means to purchase or rent commercial

property before choosing to go down either path. When you purchase a commercial
property, you’re buying it from a seller using loan or cash proceeds. Upon paying
off the loan, you can then own your property outright.

Leasing of commercial property, on the other hand, implies that you’re renting the
property from the owner. Leasing can be long term or short-term basis. When you
rent commercial property, you become a tenant instead of the property owner.
However, leasing is a good plan because it puts you on the roadmap to owning the
property.

Factors to Explore When Deciding Whether to Lease or Buy Commercial Property

The factors below, if appropriate to your circumstance, may trigger you in arriving
at an informed decision concerning buying or leasing commercial property.

You Want to Manage the Commercial Property

Let’s say you desire to renovate or do some significant additions to the property.
Or you want to alter the working hours for your business or change the general
activities of your business. If you rent commercial property, you may need a go-
ahead from your landlord to execute such changes. But when you buy the property,
you’ll not need the approval of anyone, to make the adjustments.

Look into The Long-Term Cost

Leased property in its early years may beat out a bought property regarding cash
flow. However, in the long run, buying a commercial property is often cheaper since
the owner, other than paying all the costs involved in the acquisition and
maintenance of the property will also generate for himself. You can evade paying
the profit premium to the rent commercial property by purchasing the property
rather than leasing the commercial property.

You Reside in A Location Where Land is Appreciating in Value

If you plan to shift to a new location where you believe that the land value will
continue to shoot, it’s advisable to buy the property to enjoy the profit accrued
from land appreciation. This will do you good if you can spot the trend in real
estate before the rise in the price of land.

Buying Commercial Property May Earn You Tax Savings

Purchasing a commercial property will help you cut on your tax bill, which is not
the case when you lease the property.

You Fear Maintenance Duties

If you hate the hassle of maintaining the duty of property, then you should only
rent commercial property and leave for the landlord to handle the rest. Maintenance
hassles that may trouble you include progressive structural quality of the property
such as repairing the roofs, heating effects, periodic maintenance, maintenance of
electric, cooling, and plumbing equipment.

You Need to Preserve Your Mobility

If you’re unsure whether the property you choose to buy today may be in a position
to serve your future needs as you expect, the only decision may be just to rent
commercial property. This allows you mobility up to the time when you’ll feel that
the property of your choice is ready for purchase.