The Money Saving Benefits of Buying Business Property
The vast majority of businesses out there rent out workspaces from commercial landlords, and it’s easy to see why. It requires little investment and also means that you don’t have to worry about fixtures and fittings breaking down, security, mobility, and all kinds of other reasons.
However, that’s not to say that buying an office or workspace outright is a bad thing. And in fact, if you are planning for the long-term, it can turn out remarkably cost-efficient, and even end up making your company a lot of money. Here are some of the money-saving benefits of buying a business property – read on to find out more!
No rent increases
When you rent from a landlord, there are no guarantees that what you pay now is what you will be paying a year from now. If your location suddenly becomes popular, ultimately, your landlord is going to up their rates. You might have to bite the bullet and pay up, which will eat into your profits, or be forced to move on – possibly to another unstable workspace where there is a danger of the same thing happening again. If you buy outright, however, you have complete control over your future, regardless of external events.
Buying commercial real estate also gives you the opportunity to sublet. Any free space in the building could be used as a money-making opportunity, which will all contribute towards paying off the building loan and could even end up being an extra revenue stream for your business.
Charge for costs
There are plenty of costs involved with owning commercial real estate, of course. There is insurance, power generation, home loan payments, and service charges to consider. Repairs and maintenance are a big issue, too, but there are ways of making it work for you. According to Rollinger Companies, investing in high-quality, durable materials when you move into the property is your best bet., And then it’s just a case of allowing for those costs and charging other tenants for them over the course of 5-10 years. As long as you don’t exceed local market rates and your other tenants are happy with their workspaces, it will soon lead to you getting a higher return on your investment.
Paying for an asset
When you pay a landlord, all that money is, effectively, a write-off – you will never see it again. But when you buy a piece of commercial real estate, you are putting money into an asset. Yes, there are loan interest charges, but the reality is that within ten years at most you will be paying a healthy amount of money towards a significant asset for you and your company. And you will reap the rewards when the time comes to sell.
Good for your image
Finally, when you rent a place, you only have limited input into how it appears. But when you own somewhere, you can create something extraordinary that will give your brand image an exceptional boost – just think about Google’s offices for an excellent example of how it can have an impact.