Every business needs an office to operate from but not all of them have the financial capacity to buy a property. Many businesses also go for office leasing in Noida considering their budget in hand and long-term goals. Let’s weigh both options to know what’s best for you.
THE BENEFITS OF BUYING COMMERCIAL PROPERTY
Buying property means making a ‘big’ investment. Though it’s not as easy, it does offer many long-term advantages for your business’s success.
Gradual Ownership
When you buy a commercial property, you build an asset. With every mortgage payment, you get one step closer towards growing your ownership. Once the entire payment is done, now it’s time to enjoy an increase in the property value.
Stability and Control
Owning an office gives your business stability. There will be no landlord, no rising rents or end of the lease. Make all the changes you want as you will have full control over the property.
Potential Rental Income
If at all you don’t need all the space, you can lease out portions to generate rental income. This income will also help you pay off your loans faster. Being a landlord to other businesses for a ready to move office space in Noida, you can ask for an increased rent in the future.
Appreciation and Long-Term Investment
The prices of commercial properties usually go up with time. If you buy an office in a flourishing region, your property value will increase. This is an investment that will have an asset ready for you.
THE DOWNSIDES OF BUYING COMMERCIAL PROPERTY
Buying a commercial property means building an asset. Though it’s great, it also has its own set of challenges.
High Upfront Costs
Buying a workspace is accompanied by a huge upfront investment. You make a down payment, legal fee and other costs. This can put a lot of financial burden and if yours is a small company with a limited budget, things may get very tight.
Regular Maintenance Responsibilities
When you own a property, you automatically become responsible for its condition. All future maintenance ais on your shoulders. From big renovation to small plumbing, you have to take care of everything that will keep distracting you from the main work.
Limited Flexibility
When you own a property, your flexibility becomes limited. Owning a commercial property can limit your business’s flexibility. If your team size grows quicker than your expectations, you can’t sell the space. If there’s a need to downsize, you can’t lease the extra space easily. You will be tied to a specific location.
THE BENEFITS OF LEASING COMMERCIAL PROPERTY
Leasing is a less expensive option for growing and small businesses. You can consider it for the following benefits:
Lower Initial Investment
For office leasing in Noida, you need to make a smaller upfront payment. There is no need for a substantial down payment. Businesses can pay easy monthly rent.
Flexibility to Relocate
Your business gets the flexibility to relocate and scale up or down. You can always move to another location as your company grows or when the lease expires.
No Maintenance Responsibilities
Most lease agreements state that landlords are responsible for all the maintenance and repairs. This can save the tenant huge costs and money. You don’t have to worry about any unexpected expenses.
Access to Prime Locations
Leasing lets you take your business to a prime location because it’s not possible to buy. High-demand areas have skyrocketing property prices, but leasing can make things possible.
Predictable Monthly Expenses
When you lease an office with Lets Connect Noida, for example, you know a certain amount that will be paid by the end of the month. This can make budgeting easier and gives financial predictability.
THE DOWNSIDES OF LEASING COMMERCIAL PROPERTY
While leasing gives you much-needed flexibility, there are also some disadvantages attached:
No Equity Buildup
When you lease, every rent you pay is just an expense, not an investment. At the end of your lease, you don’t have a property with you even after all the money spent. All this while all that money couldn’t create an asset.
Rent Increases
Leases also include rent increments with time. The more premium the area, the higher the rates which makes it very tough to keep going. By the time your lease ends, you’ll be paying much more.
Limited Control
Working from a ready to move office space in Noida leaves you with limited control of the property. You can’t make all the upgrades or changes you want to the space as per your business needs.
Conclusion
Buying or leasing an office depends on the requirements and financial situation of a company. We discussed the pros and cons of both options that will guide you in making the right choice. If you are planning to lease an office space in Noida, contact Let’s Connect and we will help you with modern workspaces with essential amenities at competitive prices.
