Most entrepreneurs face this dilemma at least once in their life: whether to buy an office space or just get one on lease? No decision is ideal, each one depends on the individual basis. It can differ from person to person. While it may be perfect for one to buy, it might not be the ideal decision for you. Hence, we have done a thorough analysis for you to effectively create your financial planning in the best interest of your organization.

There are multiple factors you need to consider when you’re faced with the dilemma of whether to buy or rent a commercial space. The most vital factors are the cost, location and the property but then, the financial health and condition of your organization also matters. And so do the local needs and opportunities of expansion for your business in the future. For example, if your organization has been thriving for years and years and have a sound financial standing and also have higher chances of expansion in the future, you can definitely go towards investing in a property for a long-term that can act as an asset to the company as well.

Advantages of Buying a Commercial Property

Tax Deduction

When you’re buying a commercial property, you might have to buy it on loan due to its high investment costs. This can result in high monthly loan payments but it can act as an advantage for you if you want to deduct your taxable income as these EMIs are counted as expenses. Here, you can save money on your taxes.

Asset Creation

When you are buying a property for your organization, you are not only creating a workspace but also creating a lifetime asset. This can help you in creating collateral securities at the time of availing loans.

Rent out the Property

If you have a large space, you can definitely rent out the extra space and use that rent to pay your mortgage. But keep in mind that the rental income is subject to tax deductions.

Disadvantages of Buying a Commercial Property

Buying a New Office comes with Costs

Buying a property involves high financial and opportunity costs. You are also paying a substantial amount as the down payment and also putting your organization under obligation to pay monthly EMI for years and years.

Maintenance of Property adds Liabilities

If the property needs renovation, repairs and maintenance, the costs will have to be borne by you. You will be liable to repair the damages and structural defects. You will also have to bear the insurance and the property upkeep costs.

Hope this would have helped you make a better decision as per your standing.

Also, we would like to introduce you to Maple Trade Centre , a commercial office space by Ganesh Housing Private Limited . These office spaces are available for both, buy or lease.

These office spaces come with 3000+ sq. ft. of sizes. They have their own exclusive balcony spaces that open up to the panoramic view of the city as the nearby properties are generally low-rise and bungalows.

Link on the link below to know more and inquire: https://ganeshhousing.com/maple_trade_centre