Buy Or Rent A Place?

One of the first questions we ask ourselves when our own business will be whether to rent or buy the shop. There is no doubt that investment in our store will be one of the most important initial expenses. But what advantages and disadvantages they have to choose one or the other?

In the final decision to buy or lease our commercial insurance significantly affects the initial capital that we have to start our project, and the risk that we are willing to take.

Choosing between buying or renting also depend on factors such as the type of business you want to start, which means that there really is no better choice than another, but that all depends on all these aspects. Seat leasing is one of the choices if you’re planning to have your office in a Business District.

However, when taking a decision we must know the advantages and disadvantages of the two options.

Renting commercial

The advantages of this option are:

1. Flexibility: you promise not to set your location at a particular place and can move relatively easily whenever you want.

2. Less maintenance and security responsibilities in the store: usually be the owner who is responsible for these issues.

3. Reduces initial investment and risks: when you buy a place to make a big enough down payment beyond the years of mortgage are fixed.

In Seat leasing, you don’t have to worry about the maintenance of the things you have to use since the company you are having deal with is the one responsible for the machines used.

Disadvantages of renting a space:

1. Unless you get a holiday whose output is in your favor, you will be required to complete the payment of a minimum of months, even before leaving the premises.

2. No you increase your business' assets because, unlike the purchase, you'll pay a high amount permanently as income on an asset that will never be yours.

3. Still keeping certain responsibilities with the equipment. This responsibility will depend on what was agreed in the lease.

If you're going to reform or improve the local investment lose when you leave the room

Buy Local

Buying is also an option if you’re planning to have an office, but buying requires a lot of money compared to seat leasing.

Advantages of buying a local:

1. It represents a tangible asset that can be taken as a long term investment.

2. The costs are fixed, but the increase is added at the beginning of each year is added to rentals.

3. It is easier if you can sublet part of the premises and obtain extra income. You have more freedom if you decide to sell or rent your premises.

Disadvantages of buying a local:

1. You take responsibility for all repairs and maintenance of the premises.

2. No space flexibility: you may eventually need to expand your business and the place you bought it or you may outgrow the experience you realize that there are areas of improvement for your type local.

3. Need more cash flow at the beginning.

In short, it is optimal to analyze your business needs to make that decision that makes your business grow and survive over time. If at the end you rent, studies well before signing the contract. If, however, you decide to buy it, always think long term.