Commercial property is a place that is meant to do business or say is the work area of anyone. In a commercial property, there can be offices or factories also. Owning a property for commercial perpous, adds as a big asset to your name.
Most of the time people who start with a new business have confusion whether they should buy a this type of property or just rent it for setting up new business. People often rent a commercial space while setting up with a new business as he had already invested in the work he is to start with. But for renting in also, he needs to sufficient funds with him so that he can constantly be able to pay the rent of that place.
Moreover, renting in a commercial space does not affect your capitals when there is an increase or decrease in the market. The landlord is responsible for all the bills of damage repair in the property or any kind of decorations done within the premises of the property. This will in a way allow you to focus more in your capital growth. The unexpected hike in the cost can also be avoided when renting in a commercial property. You are not even affected by the ups and downs in the market or the rate of interest. The only thing that you will e responsible for is to pay the rent or an increase in it when required.
Secondly, if you are renting in a this property, you have an option to shift your office. You have the liberty or flexibility to operate from your desired destination as per your requirements. You can shift into a bigger space if you experience an increase in your work area. On the other hand, if at some time you feel that the rent is quite high as per your business, you can also shit to a cheaper premise.
While buying a commercial property can add to your asset, as a commercial property is definitely bigger than the residential property. Buying it will also add to the commercial value of the company. You can also mortgage it to make the repayments which are very less than the actual value. This helps you to invest a larger amount in the business if required in the future also. On the basis of your own commercial property, you can shift into a larger office as well.
The same property can earn you some huge monthly rentals also to add to your present income. Moreover, owning that type of property will save you from the high monthly payouts you would have to make if you had rented in one. On the other hand, like renting in has some disadvantages even buying has its own disadvantages. First you need to have ample capital to purchase the it. Secondly, you have to pay all the bills that stand due any kind of damage repair within the premises or any decoration and so on.
Buying or renting in a commercial property has two different outlooks depending upon the type of business you want to do.