Small business: To buy or rent office space – Part 2 ‘Purchase’…
Continuing on from our last blog on the pros of renting, we explore the benefits of purchasing commercial property in the current climate.
Clearly, buying premises should only be considered if you have the capital behind you to support such a purchase. Whilst a commercial mortgage is the more common means of funding such an investment, being in a stable position financially is vital in this unpredictable economy.
Purchase of land or property for commercial use is a long-term asset for a growing business and is a wise decision to make at a stable point in your business lifecycle. As we have seen recently however, this kind of asset can depreciate (as opposed to better times historically when commercial property managed to push through any downturns) so don’t hedge all your bets on this particular investment.
Buying property gives you the flexibility to expand and evolve that workspace over time, as you want it – providing you have planning permission. If this is your aim, make sure you find out as much as possible about the future allowances and plans affecting your land, building and surroundings.
The downside to owning your property is of course that you become responsible for all maintenance and repair however, on the plus side, it gets done when and how you want it to!
Purchase ultimately gives you control and provides a worthwhile asset in your business. Currently, deals can be found so, if your business or industry is one of those few that are booming in the recession, taking advantage of lower property prices and land for sale could be a savvy move.
Top tips: Look to buy in those towns deemed as growth areas by the government and earmarked for investment, employment initiatives, new infrastructure and residential plans. It is less likely that your property will go down in value than in other, more mature or decaying areas. Look around; compare properties, consider location, access, proximity to amenities and benefits for staff. Visit www.liscomepark.co.uk for more information and excellent land-for-sale opportunities.
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