Are you just starting a business? Then probably one of the biggest things that you have to worry about is the office space that will accommodate your business and when it comes to that there are two options that you can choose between and those are buying or renting a space. To make things a bit easier we have put together a few advantages and disadvantages of office space for rent and space for sale in London that you should definitely consider before you make the final decision.
Renting an office space
If you are just starting out then most likely you will not have enough money to actually go and buy a property, so renting in London is most likely the first thing that comes to mind. Freeing up working capital that you can use is one of the best advantages of renting a space. This means that because you don’t have any money that is tied up in real estate you will be able to respond and take advantage of more opportunities that might come up in the market. Another thing that is considered to be a great advantage of rental spaces is that they tend to be spaces that are in prime locations regardless of which city you are in. One of the biggest disadvantages of office space for rent is that you will constantly be subjected to variable costs. This means that when the time comes for you to renew your lease, there is a big chance that the price of the rental will go up and there is nothing you can do about that.
Buying an office space
Buying is usually something that bigger, more experienced companies consider, however, if you have the funds then it is definitely a great option. One of the best things about buying an office space in London is that you will be eligible for tax deductions that are accosted with the owning and running of a commercial space. These tax deductions come in the form of mortgage interest, property taxes and other items that you can take advantage of. One of the biggest cons of buying a space is the fact that you lose any flexibility and if you find yourself in a position where your business has needs that you hadn’t counted on, you will be stuck with a place is not suitable for your business and its needs.
As you can see, buying and renting a space in a city as expensive as London is both have their own advantages and disadvantages and ultimately it will be your decision as to which of these options suits your business the best. The important thing is that you make the right research and really consider the advantages and disadvantages of office space for rent and space that is available to be bought and make the most educated decision that you can.
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