When you think of starting a business, one of the first decisions you have to make is buying or leasing the office space. If it’s a new business then leasing the property is better for the following reasons.
Unlike buying a property, you won’t need to pay the downpayment in this case. You can instead use this money as your working capital or as an investment in your business.
You won’t have to pay any tax on your property if you lease it. But if you buy the property, you will have to pay tax at the end of the year. So, you will reduce your expense by leasing the property.
The landlord is responsible for the major repair and maintenance work of your office. You are only required to clean it on a daily basis and do the minor repairs. So, end up saving a lot of money. There is no extra hassle as well.
Once you buy a property, you get tied up. In case you need to shift your office to somewhere else or shift to a smaller space, you can’t do that quickly. You will need time to sell the property before you can move elsewhere. On the other hand, if you lease the property for a year or so, you can easily move after the lease period.
When you start a new business, there are lots of costs involved. By leasing the property you will be able to save money. Once you have an established business, you can think of buying your own office space.