Buy vs. Lease Office Space Orlando – Which Is The Best Option?
Posted: May 17, 2018
This is the question that almost every aspiring entrepreneur asks herself/himself once he/she is ready with the idea, finance, and concept for a new business. Choosing a location or property for running a new start-up is not an easy task. There are several points and aspects you need to consider while selecting property for your start-up headquarter.
But what the most complicated decision to take is – whether to buy a property or take Office Space Downtown Orlando on lease! With the growing demand for commercial spaces in Orlando; it has become pretty complex to pick between both options. However, as both options come with their own set of pros and drawbacks; you need to be a bit smart while choosing between the option of buying Office Space Orlando or leasing it!
If you are also stuck with this decision and wondering where to start and what to do; then here is our guide to help you out! Evaluating the advantages and downsides of leasing and buying can help you to a great extent. Here are a few advantages and disadvantages of both options that you should consider before taking such a significant financial decision! Let’s start with buying option!
Deposits vs. Down Payments
Buying Office Space Downtown Orlando is a long-term and might be a permanent commitment and needs a really hefty down payment to be deposited. You need to deposit around 20 to 25 percent of the entire property cost while buying it, followed by monthly installments. If you have adequate financial resources; then this will be a suitable option to pick!
But if you are a start-up and don’t have enough financial resources; then leasing can be suitable for you. Leasing is a short-term vow and needs minor investment. Typically saying, you deposit a small amount of refundable money and enjoy all the facilities of the property for your contracted period of time.
Equity vs. Flexibility
What’s more convenient for you – Equity or Flexibility? The option to lease Office Space Orlando offers you greater annual flexibility which means, you can conveniently move in and out from the property whenever you want. But with the purchased property, you won’t get this much of flexibility. However, it let you developing equity that you can use as security for future extensions.
Tax Deduction Possibilities
Owning your own Office Space Orlando let you enjoy a significant reduction in your taxation; which leasing option never gives you. You can get more tax deductions from the related expenses of buying commercial space like property tax payment. But if you rent, your monthly rent amount or payments, being a business expense will naturally be tax-deductible.
Potentials of Market Growth
Owning a commercial property comes with another major benefit – the growth in the market value of the property with the passing years. Apart from running your own branch; you also can rent it out for multiple purposes. But with a rented Office Space Downtown Orlando; you won’t be able to enjoy the growth potential benefits of the property.
With the right professional network, you can take in office space for rent Orlando and work accordingly. This makes things easier for you and your company apart from your employees too.