Buying or signing a lease agreement with another landlord, This may be a question many business owners think around the beginning of each month, when it comes to paying for their rent.
With interest rates soaring and rentals going upwards exponentially, the answer might very well be to purchase the office you are in once it becomes available and you can afford the initial investment outlay.
Purchasing a commercial property and becoming a landlord/owner does have it's advantages.
1. You can choose to select the perfect location for your office operation and needs, and to secure enough space for future business expansion, or to sub-lease part of your office if it's too big for you.
2. Your monthly payment for the mortgage of the office space is at the same time building equity which will eventually becoming an asset. This is forced savings, whatever you paid today will be in the form of sale returns when you eventually sell your property at a good price.
3. Should there be no unforeseen occurrences, property market internationally appreciates with time, especially in counties like Singapore where land is scare. This appreciate in property prices will eventually allow your company to get into better financing positions, probably to even finance your further business expansions.
4. The pen is mightier than the sword. As the landlord or the commercial space owner, you decide how to finance your mortgage, you decide who to rent your space, you decide how you want your office to be layout, and you even control the rents of the space you own.
The main reason why even with the above points, not many businesses are into owning their own commercial space, is that in reality, not all business people are as money savvy as they are suppose to be, and even though they may be expert in their own business fields, they may not be an expert in investing in properties.
If your business is bringing you comfortable revenue, and you have sufficient cash flow for the initial outlay of a commercial property, you should take the first step and find out more from a property sales person in your area.
Work out your finances and be better prepared if a good investment comes along. There are many good investment property out there, and you can check out the review of ARC 380 or review of Ascent @ 456 Balestier Road.
By always keeping yourself updated, you will always find a good way to better let your money work for you. Hey, that's business!