Should you buy a building for your business?

Should you buy a building for your business

Want to buy a building for your business?

Tired of paying rent for your commercial premises and considering buying a premises for your business?

Owning a building works best if your business is well-established, you have money to invest, and you’re taking a long-term approach – it can take many years for this decision to pay for itself.

The advantages of owning a commercial property

- You no longer need to worry about dealing with a landlord. You’re the landlord now, so your lease won’t end and you get to make all the decisions about how the premises is used. If you want to make changes to the fitout, it’s up to you.

- You don’t have to worry about rising rent. Eventually, owning a premises will be cheaper than leasing. When you continue leasing, you can expect the rent to keep going up – sometimes the jump may be substantial.

- If your business moves or closes, you still own the building. This can be a highly valuable long-term asset, depending on the type of building and the potential tenants.

The advantages of leasing your business premises

- Leasing gives you more flexibility. You can move if your business gets too big for the space, or downsize if more people are working from home.

- You don’t have to worry about paying building expenses like rates, warrants of fitness, and insurance.

- Your rent is likely to be lower than the servicing costs for a commercial property loan, boosting cashflow so you have more to invest in the growth of the business.

- The landlord will take care of repairs and maintenance on your building – when there’s a leak, for example, it’s not your problem.

- Commercial buildings are typically expensive and financing is costly, so you’ll need to do plenty of research before you decide to make a purchase.

Do you need to buy a building for your business? Talk to us!

We can run a cost-benefit analysis.

Could buying a building be the right choice for your business? We can work with you to analyse the costs and benefits of each option, to help you make an informed decision about which one will put you on track to achieve your goals.

Get in touch today, we’d love to hear from you

Related link: Choose your business location

Acro Accounting & Financial Planning (AAFP) offers a one stop solution right from accounting, taxation, financial planning to other business advisory services. As Certified Practicing Accountants (CPA’s) and professional tax advisors, we pride ourselves on being experts with the latest developments relating to business and taxation. We as professional public practice firm, provide high quality taxation and business advice to our clients through a personalised service at competitive rates.

Related Articles

Can Your Business Claim the Loss Carry Back Tax Offset?
Did your business make an income tax loss in 2020? You may be eligible for the loss carry back tax offset in this financial year. Get in touch to see if your business qualifies and how to best use this refundable offset to generate cash flow.
Master Profit Planning: Drive Business To Financial Success
Boost your business’s financial success with effective profit planning strategies. A comprehensive guide for business owners and professionals.
Why is Having a Business Budget Important? 6 Benefits
Learn about the importance of having a business budget so you can control your spending and expenses. Start maximising your revenues today!
Tax Offset vs Tax Deduction: The Ultimate Guide | 2023
Understand the difference between tax offset and tax deduction with our comprehensive guide. Maximize your tax savings today!