Renting vs. Buying Office Space: Which is Better?
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- Published date: September 29, 2021
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- Mumbai, Maharashtra, India
When you have to make a decision that whether to buy, rent or lease office space in Andheri for your business, remember that no one-size-fits-all answer. The type of office space you require depends on the specific goals and needs of your business.
You also need to be aware of your financial position, and whether or not you have the capital to buy a place of your own. As nowadays, most small business owners prefer to buy rather than leasing or renting a commercial property. However, the choice to buy rather than lease or rent a commercial property is not black or white. They all have their own advantages and disadvantages. So as a business owner you may have to carefully weigh out the pros and cons of each choice before finalizing your decision.
To help you make the best decision, here we have put together a list of pros and cons for renting, buying and leasing office space in Andheri. Check them out below.
Information on Renting or Leasing Property
When renting or leasing commercial property for your office space, you’ll have to negotiate and sign a commercial lease or an agreement. Leases can last anywhere from 1 to 10 years, and most are renewable. Besides, finding office space for lease or on rent gives your business a chance to position your business in a prime location that can contribute to a more sophisticated brand image.
Some of the Advantages of Renting or Leasing Property
1 – There is no down payment when leasing or renting office space. You just need to pay a refundable deposit that almost equals 1-6 month’s rent.
2 – When you rent commercial property, the monthly rent payments are tax-deductible as a business expense.
3 – The landlord handles most of the maintenance concerns.
4 – Depending on the market, renting may allow you to establish your practice in a desirable location that you couldn’t otherwise afford.
Disadvantages of Renting or Leasing Property
1 – If you take office space in Andheri for rent or on a lease, you cannot build any equity in the property.
2 – Your rent is likely to increase over time.
3 – Leases may initially seem cheaper, but there are usually extra or hidden costs, such as common area costs, or split utilities.
Information on Buying Property
When you buy office space in Andheri, you’re not just investing in your business. You’re investing in commercial real estate that will potentially increase in value. Also, when you buy commercial property, you’ll probably want a Special Warranty Deed. It will protect you against liability for the debts of or any damages and problems caused by the previous owner.
Some of the Advantages of Buying Property
1 – You have the freedom to manage the property, and use the space how you want.
2 – Over the long term, if the property appreciates in value, the office may become a good investment vehicle.
3 – You’ll have a fixed overhead with your mortgage.
4 – You could rent out extra space for a decent amount. It would increase the cash flow and diversify the sources of your income.
Disadvantages of Buying Property
1 – You’ll have to take care of all maintenance responsibilities.
2 – You’ll have to make sure your property is properly zoned if you plan any construction.
3 – You will have to pay taxes on the property.
As you have read the above article, you have come to know that buying, renting it leasing have their own advantages. So now, if you planning to buy commercial office space in Andheri east or looking to rent a 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.
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