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Advice - Rent or Buy a Commercial Property?

There is a wide variety of choice within the commercial sector and the decision to ultimately buy a premise or rent a premise will be determined by each person’s specific circumstances, as well as needs.

Below is an overview of the pros both approaches: 

Renting

Pros 

  • less initial capital outlay than buying, saving on cash flow that may be needed elsewhere in your business
  • avoid any risk of falling house prices
  • avoid the risk of interest rate rises
  • easier to relocate should you need more or less space, as you are not tied into ownership (however this will be determined by your length of lease)
  • flexible or short term leases are available in instances, which are perfectly suitable for start ups trying out a new business venture

Buying

Pros

  • buying a property means there is no lease period and therefore no risk of losing the premises once a lease has expired
  • as the property will be under your ownership you have more flexibility over what use the property is put to - rented, sold, used for your own business etc
  • over a period of time the property could rise in value, ensuring a return on your investment
  • the premises can be altered as you see fit (subject of course to planning and laws)
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