Rent or buy business premises
Whether you are expanding your business and looking to get a larger premises or simply moving for convenience you need to consider the question ‘rent or buy business premises?‘
Right now there are deals to be done on both – landlords are looking for tenants so will be happy to do better lease deals to include rent free periods and lower rentals. However, if you are able to borrow money from your bank (I emphasise the word ‘IF’) and you have the requisite deposit, then there are also good deals out there on buying business premises too.
Right now I am buying a larger factory for my furniture business simply because I feel it is a great time to buy and I will add it to my property portfolio and charge a rent to the business, thereby avoiding NI and a sizable amount of money from the company. This bought property is then added to my future pension pot.
Renting a business premises has its merits, not least if you don’t have the deposit money, but also even if you do, you are not going to tie up capital in a premises when it is needed in the business.