Renting vs buying an office space: What is better?

Posted by 1bhkingoregaon on December 23rd, 2021

All growing businesses may someday face this question that whether they should rent or buy office space in Andheri. And the answer to this question mainly depends on the choice of property. If you aren\'t able to find a perfect location for your office space, you may have to settle for renting the place.

Also finding a commercial space is not at all an easy task, it\'s almost as difficult as finding a new house. During your search for office space, you would come across a lot of buildings that you can buy, but also spaces that you can rent. That\'s why most business owners find it difficult to make a choice in this regard. And of course, no one wants to make a wrong choice, as it could have consequences for the future of your company. That is why in this article we tell you that what your best option is: rent or buy office space in Andheri? We have also mentioned here some of the key facts of leasing versus buying office space that you should consider before making a decision.

Benefits of Buying an Office Space

A lifetime asset

If you buy a commercial property, you build an asset that can also be used as collateral security to avail loans in future. However, the decision of buying should be assessed against the current situation of the business, profits and future goals.

Tax deductions

You can deduct the monthly mortgage interest from taxes as an expense. Although you can’t deduct the entire payment as you do with the rent, you can at least deduct the interest within the payment.

Equity build-up

Let it be any property commercial or residential, it appreciates over time. This means that the property’s value is only going to increase over time. And you could even sell the space and use that money as your retirement fund.

Additional source of income

If the property is spacious and huge enough, you could rent out that extra space for a decent amount. This would help you to increase your cash flow and diversify the sources of your income.

Benefits of Renting an Office Space

Prime Property

A leasing office space option provides a business with the chance to rent in an area with a good location and high image. If your small business is dependent on location and image, such as retail or restaurants, the leasing option is much more affordable.

Flexibility

Renting an office space in Andheri gives you the liberty to choose the location according to one’s convenience and preference. Also, the arrangement is more apt for rapidly booming companies, especially where business expansion is planned in the future.

Minimum Investment

If you rent an office space it involves minimum investment as a refundable deposit. Still, the security deposit might range from three to six months according to the landlords but the amount is still quite nominal when compared to the down payment needed in purchasing a property.

Easy to move out

When your businesses grow and receive more clients, you would need to hire more employees to do the work. And you would feel the need to look for bigger office space in Andheri. So, when such a time comes you would have only a few worries in your mind since the place is rented.

To Wrap Up

Overall, the decision of whether to lease or buy an office space comes down to one’s preferences. While buying an office space is appropriate if your business is quite large and looking for waiving of taxes, renting an office space can be the best choice if you demand cost-effectiveness, flexibility, and room for some change. So now as you read the article, if you are looking for commercial office space in Andheri east or smart office space in Andheri West visit The Chandak Group - www.chandakgroup.com. They will offer you some of the best property deals in your budget.