You do need a good amount of amount to establish a new business. It involves hiring the right employees, modern infrastructure, marketing, etc. In case you already have a business, then perhaps, you may seek to expand it further. Whatever be it, you do need to better, bigger place to start your office. You may find it a bit confusing whether to lease a commercial property or buy it.
Considering various factors
When making this decision, you are to take into account several aspects like estimated business growth, legal requirements as well as projected total turnover. Getting to know the details of each aspect will allow you to make a proper decision that will benefit your business in the future. Purchasing and leasing a commercial property is known to have its own pros and cons. Fortunately, you can seek commercial property finance development and investment!
Benefits of owning a commercial property
• Tax benefits: Buying a commercial property by taking help of property development finance lenders south africa can help reduce taxes. Tax deductions can be derived for EMI interests paid. Thus, you get to save a huge amount of money.
• Increasing value: It is quite natural for your commercial property to increase in its valuation. This is because of improving demographics in the surrounding or social infrastructure. Hence, selling property in the future is likely to help derive huge profits.
• Greater property control and equity: Buying a property for commercial purpose allows you to enjoy complete ownership that increases as the loan amount is repaid with interest. It also allows you to get hold of secured business loans as you can pledge your property with the lenders as collateral.
Benefits of leasing
• Declining property prices in your locality will not affect you in any way if you have leased the commercial property. But this is not the case with purchasing it as you are to bear the loss unless the property rates climb up again.
• Easy availability: It can be difficult to procure a loan to buy commercial property with favourable interest if you have low credit score. The score does not matter if you plan to ease a property. Hence, for those with low credit score, leasing can be a better option.
• Flexibility: Leasing options allows you to move/change to any location whenever desired without having to bother about making huge investments. Also, to lease commercial property, you may not even require a loan. But to buy one, you have to seek help from Property Finance Companies South.
• Lower maintenance costs and no down-payment: It is possible to lease commercial properties for short or long-term based on your business requirements. You can also enjoy having liquid funds that can be used for other important purposes. Leasing also means not having to bother about its maintenance. The landlord will take care of maintenance and repair work.
Leasing vs. Buying
Whether you desire to buy or lease a commercial property entirely depends on your available capital and business requirements. There are financial institutions that can offer you with loans to buy commercial properties.
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