Deciding whether to buy or rent a business premises

Whether you are about to start a business or you have successfully built one, the first thing you need to consider is: “should you purchase or rent a property for your business?”

This is a decision that must be weighed carefully with every aspect considered as each scenario is different for every business.

Here are a few things that you should ponder before making the decision:

Why buy?

1. Making your expenses predictable – You can enjoy a peace of mind when operating in your own business premises as you will not be exposed to sudden hike in rent increase. This will help you to make your expenses more predictable and allow you to focus more on running your business.


2. Total control over the space – You will have direct and total control of the property space, which allow you to carry out renovations that tailor to your business needs and enhance the curb appeal of your business premises for better public exposure.


3. Build equity in property – Owning your own business premises allows you to build equity in the property, which is likely to gain value over time. Besides adding to your business’ capital valuation, that gain may come in handy when you want to refinance the property for additional capital to expand your business.


Why rent?

1. Lower upfront cost - The cost of starting your own business will be lower if you decide to rent a commercial property as your business premises. This will also free up cash that could be used elsewhere, such as renovation, staff recruitment, acquiring equipment, etc.


2. Flexibility of relocation – Another advantage of renting a business premises is you are not locked into property ownership. Hence, you can enjoy the flexibility of relocating to a new location once the lease ends. This is suitable to business owners who are still trying out in various areas to determine the best location to settle down.


3. Start your business fast – If you want to start a business in a location that your competitors are also keen to venture into, renting a business premises would be a better option. This is because you will be able to get the tenancy deal done in a shorter time as compared to buying, which typically requires a few months’ time to conclude.


Each business has its own complex needs and hence it requires thorough research before one can make an informed decision. 

Whether it is buying or renting, PropNex has a wide array of commercial property listings in various locations and price ranges that are suitable for different businesses.

Contact us today via WhatsApp (http://propnex.psee.ly/RWBNQ), phone (+603 7954 2233) or email ([email protected]) to find out more.



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