Could Buying Your Next Business Premises Be a Smart Move?
If you’ve gone from being a fledgling start-up to a more established business then it could be that you’ve started to outgrow your current business premises even if, to date, these have only been a home office.
When the time does come to expand, many business owners’ immediate inclination is to look around for rental premises first. But there is a great deal to consider when renting and they could be missing a trick if they don’t also consider the option of buying a property.
Yes, renting does provide a certain level of flexibility in that you’re only tied to the term of the lease but it’s money that you’ll never see again. On the other hand, buying a property is an investment – although not a surefire one – that could work out better for you in the long run.
However, before you do take the plunge into buying your own business premises, there are certain things to consider carefully.
Choose the right mortgage
It’s a given that you’ll need to put up some capital of your own if you intend to buy and the balance will generally have to be raised through a mortgage. Obviously, the better the rate you can secure the lower your repayments will be. So consulting an online free mortgage broker like Trussle should be one of the first moves you should make. That way you’ll get advice on how much you may potentially be able to borrow. Even more importantly, you’ll be able to compare the monthly repayments required by different lenders.
Choose the right location
It’s true of homes and it’s equally relevant when it comes to buying business premises. You should always carefully choose your location so it has good communication links, is somewhere you would be happy to bring clients to visit and which will be appealing to your employees too. If possible, you should also consider moving to somewhere that has been designated as a growth area by the government as there are likely to be a number of initiatives running, as well as possible grants, designed to attract other businesses too. Get in at the right time and you could find that value of your property increases as the demand grows for the area.
Choose the right property
Again, like house hunting, don’t just decide on one of the first premises that you see and like. Have a proper look at everywhere that’s available and within your budget and then draw up a shortlist. You’ll have to take into account how your business’s needs are going to change over time and whether the property will be able to be altered to meet them. It’s also essential to have a full survey carried out, especially on older properties that may have hidden issues such as asbestos. If these are discovered at a later date it could mean huge expense and inconvenience as an experienced contractor resolves the issue.
So hopefully this advice has given you some food for thought and alternative to renting. And now it’s time to start the search . . .