Is buying your business property the correct choice?
Companies all over the world have long held the view that a sensible use of money is to invest in a property to call their very own.
The disadvantages of buying your business property
Owning a property represents an extra expense which, on closer inspection, can come off as frivolous and unnecessary, especially when you see that renting can bring annual savings reaching millions of pounds.
When you buy property, you are also buying into a potentially disastrous lack of flexibility. The more flexible you want to be, the more property you’re going to have to buy. Renting spaces for office use, meetings, conferences, or other special projects means that you can take on more space exactly when you need it and where you need it and ensures you’re not wasting money on guessing what might be. It also brings advantages to your employees, often slashing commuting times and boosting productivity.
The advantage of renting your business property
It was thought that a private building would speak volumes about a business’s strength and stability as a company. And what’s more, it was commonly accepted that buying a building was a solid long-term investment in a solid asset that could act as a safety net if more turbulent times came along.
However, the tides of change have come, and the waters are closing over this prized maxim. A new wave of property rental has swept the world, proving its worth to companies large and small. From global megalith Walmart and its mere cluster of buildings surrounding their central warehouse, to smaller companies like Yell in the UK, who have recently given up their privately owned branch offices, companies large and small are now feeling the benefits of renting office space instead.
Unless you are a property dealer, why tie up more and more of your money in properties? If property is what you’re after, then it’s better to deal exclusively in property. Renting will allow the valuable capital in your business to work for a much more favourable return. Make a smarter move and explore the myriad of rental options available that can save you a fortune.
Renting frees up funds, reduces exposure to unforeseen maintenance and repair costs (which fall to the landlord) and provides a safer, more adaptable workspace for your team. You aren’t locked into the location; renting makes relocation simpler. Letters aren’t locked into a sales process; you can simply exit the tenancy and move on.