There is a wide variety of choice within the commercial sector and the decision to ultimately buy a premise or rent a premise will be determined by each person’s specific circumstances, as well as needs.
Overview of the pros of buying and renting a Commercial property:
Renting a commercial property
Pros
- less initial capital outlay than buying, saving on cash flow that may be needed elsewhere in your business
- avoid any risk of falling house prices
- avoid the risk of interest rate rises
- easier to relocate should you need more or less space, as you are not tied into ownership (however this will be determined by your length of lease)
- flexible or short term leases are available in instances, which are perfectly suitable for start ups trying out a new business venture
Buying a commercial property
Pros
- buying a property means there is no lease period and therefore no risk of losing the premises once a lease has expired
- as the property will be under your ownership you have more flexibility over what use the property is put to – rented, sold, used for your own business etc
- over a period of time the property could rise in value, ensuring a return on your investment
- 2the premises can be altered as you see fit (subject of course to planning and laws)
