As an entrepreneur, there is something so exciting about moving out of the spare bedroom and expanding your business into a proper office. When you get to this point, you’re going to have one big choice to make as to whether you rent an office or you go ahead and buy one.
It’s a big decision for any business owner, and you have to be really sure that your business has a future before you go ahead and you buy a commercial property. Commercial property may go beyond a single office depending on your business type; you may need a whole store, but you may not be willing to just rent one.
So, you have to consider what to do next. Renting your business premises can make a lot of sense when you very first start out, but if you have had time to work your business from home and you’ve built something amazing, then it’s time to consider leveling up. Most entrepreneurs know what it means to plan financially and they will plan their premises for their business in advance of their business plan. You may be ready to move out of the spare bedroom, but where do you go next? Buying your commercial premises may be the best thing that you do this year, so let’s take a look at all of the reasons you should go for it.
Avoiding Escalating Rent
When you secure a mortgage, you are going to be able to make fixed payments for the mortgage and interest, which means that you are going to be able to plan your finances properly. When you rent a commercial property, you are going to be subjected to rental increases in line with inflation, and every year, the rent can and often will go up. If you are looking to keep your business finances under control, you need to ensure that you can plan your finances for years to come. The lease can be higher than the mortgage when you rent, and if you choose to buy commercial premises, you are going to avoid those annual rental increases. If you can predict the future with your business, you should choose to buy if you’re going to be in the same place for around seven years.
It’s a Secure Option
Picture this: you’re getting your business off the ground and you’re able to keep it moving – and then your landlord decides that they want to put their commercial property back on the market. Receiving notice is probably one of the most unwelcome disruptions that you could deal with from your landlord, and a move can provide your business with a heck of an interruption! The logistics of a commercial move can be complicated, and if you have to find new premises and you are pushed out of your area, this is going to cause issues. You want to be able to be sure that your business is going to be able to remain in the area that you have built up your trade. A landlord knows how much a move costs you – both physically and in your business – but it’s not in their interest to keep your business going. They want to know that they can sell their property for a profit, and that’s what their focus will be.
It’s Going to Earn Value
Buying any property, whether residential or commercial, is going to appreciate over time. As the rate of inflation changes, you’re going to need to keep an eye on the value of your commercial premises. If you ever needed to downsize or upgrade, you’re going to be able to do it when you sell your commercial property eventually.
More Control Over Your Premises
You can make changes as you want to without having to ask anyone’s permission when you own a property. Renting one means asking permission for something, but you don’t have to do that if you’re the owner. You can upgrade the flooring and change the entire structure if you want to, as you are the owner and you make all the rules. Plenty of landlords do allow changes, but it’s better to get your business premises looking how you want on your own terms. You can get the premises that you want with Commercial Mortgage Banking help, and if you need further borrowing to make changes and expand it, you can ask for help from your bank. Take the time to do the right searches for your business premises, and you will be able to make it as impressive as you want!
Changing the Game
Full ownership of your business premises changes everything. Eventually, when you want to expand you will be able to sell up and use the money for a new site how you want to. All you have to do is know that this is the step you want to take, but your mortgage provider should be able to talk you through this!