As a business person, one of the decisions you have to make is whether to lease or buy business premises. Many people will make their decisions based on what they can afford, but that isn't always the best move. Some entrepreneurs can benefit more from leased premises while others should own their premises. For example, you should try to own your premises if you fall under any of these four categories:
Your Businesses Is Established
In the long run, rental expenses are likely to eclipse the purchase price. Don't forget that the owner of the property is also interested in making some profit on it. Therefore, if your business is established and you don't see yourself moving anytime soon, you are better off buying your property rather than renting it.
You Need to Customize the Premises
Buying your commercial premises is also a good idea if you wish to renovate, upgrade, or customize it substantially. This may be the case, for example, if the best building for your business is not partitioned the way you want it to be (say the rooms are too small). If you rent the premises, you have to ask the landlord for permission every time you want to make a substantial change. Buying it will allow you to treat the property any way you wish; you can even knock it down and construct a new one.
You Run Location-Dependent Businesses
You also need to buy your premises if your business is dependent on the location. That is the only way you can be sure that you will still be operating from the same place a couple of years from now. If you opt for the lease option, and your business depends on the location, the owner can always refuse to renew the lease or even cancel it, and your business will be toast.
The Land Value in Your Area Is Appreciating
Lastly, it's also a good idea to purchase the premises if the value of the land in the neighborhood is appreciating. This may be the case, for example, in you run a business in an upcoming suburb that investors are just noticing. In such an area, leasing premises is dangerous because rental prices are sure to rise with time. Buying the building also means you will realize some profit if you decide to sell it later.
As you can see, there are clear benefits to owning your business premises. Consult a real estate agent to help you make it a reality.