Leasing vs Buying Office Space
Posted by Chandak Group on February 18th, 2021
Finding commercial office space in Andheri east is an excellent option for Mumbaikars if they are planning to start their startup. But before starting their business, they need to have an office space to set up their business. Thus, the first question that can come to their mind while thinking about office space is whether they should buy the space for their office or take it on lease. To decide which option is better for you, you have to know about each's pros and cons.
The decision of whether to buy or lease your office space involves several factors. Choice of property, of course, is the first consideration: If you can't find what you need for rent, you may have to commit to purchasing or vice versa. Here are some of the key facts to consider before leasing or buying office space to make your decision easier.
Advantages of buying office space
- For most practitioners, the appeal of buying office space lies in the potential to build equity in the property. Over the long term, if the property appreciates, the office may become a good investment vehicle.
- If you have extra space, you can rent it out to add to your revenue
- The associated costs of owning and running a commercial office space in Andheri east can provide tax deductions in the form of mortgage interest, property taxes, and other items.
- Since you are the property owner, when you retire, you can sell it or become a landlord by leasing to another business.
Disadvantages of buying office space
- There is a higher opportunity cost. In other words, the money you invest in the property can help you to grow your business in other ways. You need to determine if that is an issue or not.
- Maintenance of the property needs to be taken care of from time to time, and the owner of the property is responsible for property maintenance. Property maintenance requires an investment of time and money; thus, you take on this task yourself or hire a property manager.
- The owner has to pay for remodelling, repairs, and maintenance of the property
Advantages of taking an office space on lease
- Leasing commercial office space in Andheri east provides a business with the chance to rent in an area with a good location and high image. If you have a business that is dependent on location and image, for example, retail or restaurants, the leasing option is much more affordable for them.
- Depending on the market, taking office space on lease allows you to set up your business in a desirable location that you couldn't otherwise afford.
- Leasing has a low initial financial commitment with no down payment, just a deposit. Also, lease payments are tax-deductible.
Disadvantages of taking office space on lease
- If a person chooses to take commercial office space in Andheri East on a lease, they may be subject to annual rent increases and higher costs at the time when their lease expires.
- As a renter, they do not have permission to build equity in the property according to their choice.
- Usually, the landlord sets some rules concerning the use and state of outside areas that may impact your ability to store vehicles and materials. Be sure you discuss these beforehand.
As you have come to know about some of the pros and cons of buying or leasing an office space if a person is looking for commercial office space in Andheri east visit The Chandak Group - www.chandakgroup.com as they offer you some of the best property deals in your budget.