What Should you Choose – Buy or Lease a Commercial Property?

Buying a property is everyone’s dream especially commercial property because it generates regular cash flow when rented out to a good tenant. It makes more sense to buy if you have enough cash for the down payment and mortgage payments. But both Buying and Leasing a property have their own advantages and disadvantage when done at the right time.

Lets check it out what you should do buy or rent a commercial property :-

WHEN SHOULD YOU BUY THE PROPERTY:

1. RENTING:- If you Want to rent out part of the property to generate a secondary income stream then you should buy the property. Generation of a second source of income will also help you get more cash to boost your main business. Now a days people generate huge income from renting there places.

2. EQUITY:- You should buy the property if you plan to build equity in the property. Which means if you want to sell the property for more than you owe. You can use the profits for another property, pay off other debt, or invest it elsewhere. You can build long-term wealth.

3. RECONSTRUCTION:- If you Want to reorganize the space as you see fit i.e If you wat to make changes in the property reconstruct or renovate it then you should buy the property as it will give you more control over your property.

WHEN SHOULD YOU LEASE THE PROPERTY:

1. FLEXIBILITY:- If you travel frequently and not able to stay at the same place for long time then you should lease the property because If you buy the property it will be a waste of money, as again you have to change your business location.

2. COST:- If you want to  avoid tying up your money in the down payments and spending huge sum of money can cripple you business  then you should try leasing the place.

3. FREEDOM:- If you are a new startup and cannot afford to waste time on maintaining the property, then you should rent a place where you are free from this responsibility and the landlord will be responsible for that, That way you can be more focused on your business.

Apart then these, there are many points on which you can consider your suitable option, and it completely depends on your personal situation.