ToBuyOrToLet - Simmers & Co

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Simmers & Co
Chartered Accountants

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Should you buy or let your property

Choosing to buy your business premises is a big decision. Should you buy or should you rent? There are advantages and disadvantages to both and you should consider matters carefully. For example, your type of business may need to change location quickly and easily or the opposite might be true.

The advantages of owning your business premises include the following:
  • You own an asset that will potentially increase in value.
  • Interest payments are tax deductable.
  • Mortgage payments are likely to be cheaper than rental payments.
  • There will be little trouble in subletting extra un-needed space.
  • It will be easier to budget as you will not have unexpected high rent increases.

The disadvantages of owning your business premises include the following:
  • It is harder to re-locate your business if your business needs demand it.
  • You will probably need a higher deposit that you would if renting the property.
  • You will possibly be responsible for more of the costs of upkeep of the building than you would be if you rented the premises.
  • It is usually easier to extricate yourself from a rental agreement than to sell premises.
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