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To open and establish a business, an office space is a must. Whether the investor rents or buys completely depends on how big his company is, its spatial requirements, how strong his customer base is and, of course, his financial condition.
But it is often feasible to buy a commercial space instead of renting. Why? There are a few logical reasons.
Experts say paying monthly or yearly rents is not an investment. However, if the owner buys an office, he is actually shelling out the same amount of money (or a little more) for a space that is his own. In the long run, it will translate to huge savings. The equity on the property will increase over time and, if required, it can be sold off at a higher rate.
The other good thing about having one’s own place is that one does not have to deal with landlords on a regular basis. Although not all landlords spell trouble, there are some who have to be handled tactfully. Ownership empowers and business owners can always take charge of their business, able to deal with it exactly the way they want to.
Changing offices frequently brings with it the hassle of moving everything. The procedure not only costs a lot, it also takes a lot of time and manpower. Buying a commercial space can ward off these problems. Besides, equipment, furniture and fixtures do not have to be fitted again and again if the owner decides to stick to one place for a longer period.
Factors like competitive interest rates on mortgages and value for money might drive entrepreneurs to buy a commercial space, but certain aspects must also be taken into consideration; e.g., maintenance costs and the need to increase space once the business expands. Buying also involves a big upfront cost.
It is, therefore, wise for any business owner to mull about these aspects, weighing the advantages and disadvantages, before finalising a deal.
• Experts say it is always better to buy a space rather than rent
• It empowers the businessman to do what he wants with his space
• It removes hassle of constantly shifting offices which is costly
Source: Shabnam Mondal, Special to Properties
The writer is a freelancer