Have you just started a business and are not sure whether you want to rent or buy a commercial property or workspace? Here, you’ll find the different options available to you!
If you want to start or take over a business as an entrepreneur or self-employed person, there are thousands of questions that come to mind. One of those questions will undoubtedly be: “Do I have to rent or buy a building to house my business?”
The modern corporate world is subject to constant change. Their requirements when it comes to real estate are correspondingly changeable. Working hours are becoming increasingly flexible, many employees work from home and rental costs in city centers are increasing. It is not easy for many entrepreneurs to answer whether it is worth investing in commercial space given the long list of pros and cons. Business owners in particular can best estimate what their own company needs and whether it makes sense to jump on the “real estate manager”.
There are so many factors surrounding your choice. These factors would be discussed below.
Working from Home
Depending on the business that you are going to operate or the service that you will offer, you can also place your activity in your home. Some freelancers and consultants can actually work from home. The advantage of working from home is that you can contribute a certain percentage of your workplace and material to your professional costs.
An example: you use 5% of your house for your professional activity. In that case, you may contribute 5% of your loan that you took out privately for your house, to your professional expenses. You can also do this for the costs of heating, electricity, computer, etc.
Ultimately, for most companies, it will still come down to the decision to choose to buy or rent. Both buying and renting also have their own advantages and disadvantages in commercial premises, which you as an entrepreneur should carefully weigh.
When do you choose to buy a commercial property?
When you buy a property, you invest. When your property increases in value, you build up capital. In most decisions, purchasing is more financially interesting than renting. The monthly costs of an investment loan are often lower than what you would have paid on a monthly basis in rent.
When you buy a property with your company, it is also important to think about later. Is this property going to stay in the company forever or do you want to buy the property yourself later to use it? Especially for the second option, it is important to purchase your property in the right construction.
When do you choose to rent a commercial property?
If you don’t have the financial options, or you can’t get a loan from the bank, you will be forced to rent. In general, buying is always better than renting, because you make an investment for the future.
Renting is advantageous if the prices of real estate are high. It can also be interesting to rent, if you want to expand later and you therefore only want to work briefly in a specific company building to gain brand awareness. A final advantage is that you can fully deploy your capital on your activity.
Many more benefits are not associated with renting, because you lose the rent every month and, moreover, you often cannot make adjustments to the property, or you cannot do what you want. In short, it is best to consider buying a commercial property.
Interesting Facts about Buying Commercial Property
Are you thinking about investing in your own business premises? Then this guide is just what you need. Here you will find the most important points to consider when buying commercial properties.
With the purchase of a commercial property you give your company a home and a permanent address. Rent increases and changing contractual terms are a thing of the past. A company with its own commercial space also appears to be significantly more professional and offers enough space for customer discussions on site. This can be an advantage, especially in difficult contract negotiations, as the host determines the general conditions and acts accordingly confidently.
However, investing in a commercial property is not the right step for every entrepreneur. Please ask yourself the following questions: Would you like to increase or decrease the number of employees in the coming year? And how much time do your employees actually spend in the office? Are you planning to expand in the near future, with branches in other cities or even abroad? Can your company even benefit from the flexible lease? If you answer yes to the last two questions, the right time to invest has not yet come.
The ideal location
Once the purchase decision has been made, the question of the location remains to be clarified. The right location is particularly important when purchasing commercial real estate. Therefore, carefully weigh the costs and benefits of the individual objects against each other after each visit. Also consider the travel routes of your employees, the infrastructural connection and the proximity to customers and suppliers.
If you are active in the high-tech sector, you should also consider settling outside the city center. Prices are lower there, real estate is modern and building security is easier to guarantee.
The perfect property
Before you meet your broker for the first time, create a wish list and note down all the necessary features. This limits the search criteria from the outset. Pay attention to factors such as energy efficiency or maintenance costs. These items are usually significantly lower in new buildings or recently renovated properties. Don’t just think about the here and now, but plan for the future.
If you want to expand your company one day, your commercial property should offer the appropriate capacity. Alternatively, research whether there are suitable properties in the surrounding area that you can buy if necessary.
It’s best to work with experts in commercial real estate: they take care of all the subtleties and save you a lot of time. In addition, commission an independent expert to inspect the building and present the final purchase contract to your lawyer for review. You should only complete the purchase once the buildings and papers have been checked and found to be perfect.
SDG Realties has extensive experience in marketing residential and commercial properties. For this reason, we are the ideal contact when it comes to investing in a commercial property. Simply visit our website for more information.