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Let's talk Pros Cons of buying vs leasing when it comes to your small business building.
Posted on 8/21/19 at 7:53 pm
Posted on 8/21/19 at 7:53 pm
If you plan to work another 30 years, with a bunch of unknowns, wouldn't it be better to just rent office space?
I know it'll be expensive as hell but I feel like it would be more beneficial to have the freedom to cut loose if circumstances change with the business.
Otherwise, if I was to buy, then I basically need to commit to at least a 10-15 year duration of anchoring down.
Thoughts? What other factors should I weigh?
I know it'll be expensive as hell but I feel like it would be more beneficial to have the freedom to cut loose if circumstances change with the business.
Otherwise, if I was to buy, then I basically need to commit to at least a 10-15 year duration of anchoring down.
Thoughts? What other factors should I weigh?
3
Posted on 8/21/19 at 7:54 pm to HailToTheChiz
Can the company afford to purchase a property? Does it make sense for the company to purchase a property? There are a lot of variables here.
Posted on 8/21/19 at 7:58 pm to VABuckeye
quote:
Can the company afford to purchase a property? Does it make sense for the company to purchase a property? There are a lot of variables here.
Company can afford it. Essentially the major unknowns would be folks currently in the business likely not working too much longer, possibly leaving me with the building solo.
Currently in an older building that has been paid off. Owners got in during the 90s. No commercial resale value IMO. Bad location. I expect the building will be put for sale within 10 years.
I have no interest in purchasing the property due to me being much younger than other owners.
Posted on 8/21/19 at 8:49 pm to HailToTheChiz
You are all over the place.
Eta: ok I think I figured it out. Your company is set currently but looking forward with some older partners you are trying to look into the long term plan?
I just bought a small mixed use warehouse office. I had the downpayment and I could buy more space somehow then it would cost to rent and pretty considerably. The location was also fantastic for me and likely to stay a good location for many years. Plus, I’d like to make some additions that should add value but would be a pain if I rented.
Given all that. Certainly commercial is more complicated.
It’s an investment. The downpayment for many would be used for something else. If you aren’t in an area that’s a good location and going to stay that way, certainly no reason to sweat buying. If you just need generic office space and the location doesn’t matter, again no hurry to buy.
But it’s also rent control and controlled costs. If you can find a good deal then there’s plenty of people whose building is worth as much as there business at some points.
Eta: ok I think I figured it out. Your company is set currently but looking forward with some older partners you are trying to look into the long term plan?
I just bought a small mixed use warehouse office. I had the downpayment and I could buy more space somehow then it would cost to rent and pretty considerably. The location was also fantastic for me and likely to stay a good location for many years. Plus, I’d like to make some additions that should add value but would be a pain if I rented.
Given all that. Certainly commercial is more complicated.
It’s an investment. The downpayment for many would be used for something else. If you aren’t in an area that’s a good location and going to stay that way, certainly no reason to sweat buying. If you just need generic office space and the location doesn’t matter, again no hurry to buy.
But it’s also rent control and controlled costs. If you can find a good deal then there’s plenty of people whose building is worth as much as there business at some points.
This post was edited on 8/21/19 at 8:58 pm
Posted on 8/21/19 at 9:00 pm to baldona
One of the pros of owning especially a good location, is controlled expenses. Rent increases have killed many a businesses. Places have had a long term lease for 10-20 years that double or tripled or worse upon renewing.
But there’s also places that go to hell and are worth very little in 20 years. But if your business is still doing well and you owning the building, not sure if that’s much of a game changer?
But there’s also places that go to hell and are worth very little in 20 years. But if your business is still doing well and you owning the building, not sure if that’s much of a game changer?
Posted on 8/21/19 at 11:01 pm to baldona
quote:
Eta: ok I think I figured it out. Your company is set currently but looking forward with some older partners you are trying to look into the long term plan?
this is correct.
i think my game plan would be to buy somewhere eventually once older folks get on out.
no interest in current location and building
i didnt even think about a long term rental contract. that would almost be the same as buying IMO
Posted on 8/22/19 at 7:05 am to HailToTheChiz
create an LLC and have the LLC purchase the property. then lease the property from the LLC
Posted on 8/22/19 at 10:23 am to tigeraddict
quote:
create an LLC and have the LLC purchase the property. then lease the property from the LLC
that would be the plan if i was to buy
This post was edited on 8/22/19 at 10:27 am
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