A sleek and functional office space allows your business to reach new and greater heights. But how to decide on the perfect place that will give wings to your business? We all know that entrepreneurs are often known to struggle with the question of buying v/s rentingan office space. So, read ahead as we weigh out the pros of each, and hopefully solve this headache for you.
Whether it is a commercial property in Thane or an office space in the lofty towers of Powai – letâ€™s not forget the importance that an established commercial hub plays in choosing the right office space. Be it leasing or buying, entrepreneurs prefer to be in the middle of the top business high-rises of Mumbai. So, ensure that this is accounted for in your plan to acquire a work address to achieve your business goals.
Benefits of Leasing an Office Space
Renting an office space is quite an attractive option for start-ups and growing businesses. Such businesses find it easy to function in rented workspaces, as it is quite feasible and removes quite a lot of maintenance hassles.
- Easy access to prime locations
As a growing business, it proves cost-effective to rent an office space in a high-end business locale. Such grand business circles not only offer you advanced technological resources that make it easy to work peacefully but also to maintain your brand image.
A perfect example is our project of ShethCnergy in Thane. This commercial tower is all set to be an ideal playground for budding entrepreneurs to function in state-of-the-art workspaces and maintain a luxurious status as well.
- Low capital investment
While you need to pay large down payments for purchasing an office space, renting one is not so heavy on the pocket. You merely need to give a refundable deposit or incur broker charges. The remaining capital can be used effectively for investing in new business opportunities.
- Hassles for repairs
The responsibility for repairs and maintenance expenses usually falls on the landlord. So, do ensure that you negotiate and sign a lease agreement that clearly specifies such responsibilities. An adjustment where youâ€™re responsible for the general cleanliness of the interiors and the landlord for the building repairs works best. It saves you repair expenses and precious time that can be redirected in expanding the business.
- Flexibility of shifting to a new address
In case of space issues, small or rapidly expanding businesses find it quite convenient to relocate to a new property. When renting a space, there is certain flexibility where you can work according to your business preferences.
Benefits of Buying an Office Space
Major MNCs (multinational corporations) often tend towards this option to seal a building for themselves, which they and their employees can function in for years to come. This office building becomes their very own and a significant landmark in its own right.
Instead of an entire building, if you’re purchasing a workspace – it helps to invest in iconic buildings that elevate your business status. A grand iconic tower such as ShethCnergy is an upcoming office space in Thane that will cater to your wishes of owning a global business address.
- Strong investment asset for future
Not only will you build equity over time but you can also use it as collateral to secure loans and further expand your business. You can also sell the office space later to make it a retirement funding investment indeed!
- Tax deductions
If youâ€™re buying an office property backed by a loan, you are provided significant tax deductions in your monthly interest instalments. This helps you save capital that can be invested elsewhere in your business.
Further, you can depreciate the office property for tax deduction purposes. Depreciation is the rate at which the value of an asset drops through the years, which helps to arrive at the real cost of the asset. When calculating tax liabilities, depreciation is written off as business expenses in accounting.
- Convenience of modifying interiors
You are free to renovate the interiors, which may not be possible when renting an office space. This means you can customise your workspacestailored to your specific requirements. Such interiors also help you create a unique stamp of your brand image.
- Fixed costs
If youâ€™re purchasing a property on a loan, there are fixed payments to be made in instalments. This is not the case for rented properties, where the rent prices keep increasing as the years go on.
- Option for leasing out
If you have excess space, you can consider renting out a portion of your officeproperty to incur extra monthly profits. The rent that you acquire from this property will also be liable to more tax deductions!
While we have laid out all the benefits of renting v/s buying for you, remember that investing in an office space should be tailored to your specific business goals. At Ashwin Sheth Group, we advise you to make the right decision by keeping your finances and personal issues in mind.