Are you thinking about constructing or buying an office building? There are many benefits of this option, but there are also several drawbacks. Here are some of the disadvantages you should consider and possibly consider renting/leasing instead:
The cost of constructing or purchasing an office building or office can be quite high. If you construct or buy an entire building, the costs will be especially high. That’s due to issues such as the property, paperwork, taxes, etc.
If you just rent or lease an office suite, the cost will be significantly lower. All you have to do is pay your rent or lease each month, then the landlord/property manager will handle everything else.
If you’re a startup or new company, the cost of buying an office can be especially high. It’s one of theseveral overhead costs related to your company’s operations. If you want to greatly reduce the cost of your office you should consider renting or leasing.
The downpayment on an office can be quite high, and sky-high for an entire building. The benefit is that your mortgage payments would be lower, which is a plus. That said, it brings up the issue that you’d likely have to deal with mortgage payments for several years.
- Total cost
It’s important to keep in mind that if you purchase an entire office suite or building the cost will be quite high. That’s because there are several other costs. That includes utilities, insurance, taxes, and upkeep. These costs can add up very quickly. On the other hand, if you rent an office suite instead you can save a small fortune. You won’t have to deal with a lot of other expenses, which frees up money for other expenses.
One of the drawbacks of purchasing an office building or suite is that you’re required to invest a ton of money in the building. That’s likely a situation you’ll want to avoid if you’re a startup company in particular.
Here’s the problem. In the future, you might be required to allocate funds for certain requirements and emergencies. In that situation, you might have to sell the office if you need cash immediately. If it’s tied up in a suite or office, it will create a lot of headaches. On the other hand, if you’re renting/leasing you just have to make monthly payments. The whole situation is less complex and expensive read more..