Looking for some extra space to expand your business? Then you have a big decision to make – should you buy or lease your new space. Whether you need a Canberra based office space or shopfront, then look no further for a comparison of your two choices.
Purchasing the Space
- Fixed costs and Financing: Buying your long term commercial property means your mortgage will be clear and consistent. You can also apply for a mortgage loan to help you fund your new Canberra office space.
- Freedom: Owning your property gives the freedom to adapt and change the building however you feel. Beyond decor, you can also increase security and control the infrastructure the way you like. These additions can also add value to the property as time goes on.
- Ability to Rent: If you wind up with to much space, don’t fear! You have the freedom to rent your space either by yourself or through a local commercial property agent in Canberra.
- Tax advantages and deductions: By owning the building of your business you are able to claim tax deductions for all costs associated with owning, running and maintaining business space, including interest on the mortgage and property taxes. Just make sure to double-check with your accountant.
- Upfront costs: Buying an office space in Canberra will initially cost more upfront. There may also be unexpected costs such as appraisals, maintenance costs, deposit and potentially property improvement costs.
- Lack of flexibility: You cannot know what the future may hold! Meaning your business may continue to grow, or shrink, making you property useless.
Leasing the space
- Flexibility: If you need to move spaces, you can quickly and easily with the right Canberra commercial property agent. Leases on average last between 6 months to a year, meaning your business is never tied down to a building.
- Prime Location and Property: There are more choices available to businesses looking to lease, meaning you have the ability to search around and find the right location for your business.
- More Time: Leasing provides you with the ability to focus fully on running your business not managing your commercial investment. It also allows you to respond to your business needs in a more timely manner
- Varying Costs: Your lease may rise annually, generally in line with the Consumer Price Index, etc.), which may ultimately increase your costs when you renew the lease.
- Limited Control: You have little or limited control over what the owner of the property decides to do, especially in regards to design and upkeep.
- Obligations: A bad commercial property agent may not be upfront with your obligations or other hidden costs, which may leave you out of pocket or with unexpected responsibilities. Make sure you find an agent who you trust and is honest with you on commercial property sales in Canberra.