1. Is it Beneficial for a Startup to Consider Buying a Commercial Property?

2. Along with raising capital and getting your business off the ground, finding a suitable commercial space is one of the major tasks.

3. There are countless decisions to be made, and the one that is often overlooked is whether to rent or buy the property for office space.

4. Generally, a startup prefers a rented property but buying a commercial property also has great benefits.

5. Here are some reasons that as a startup you should consider while searching for the benefits of buying a commercial property.  Become a property owner  Get rid of rents  Get to focus on long-term  No issues of cash flow  Avail tax benefits

6. Become a property owner

7. Being the property owner, no more you have to worry about the ever rising rent or the renewal of the lease agreement.

8. You can renovate or modify the space as per your requirement without having to ask for anyone’s permission.

9. For additional cash flow, you can even give a portion of the commercial space on rent.

10. Get rid of rents

11. In most cases, the cost of rent exceeds the cost of purchasing the property and one can actually save a lot by investing in an office space.

12. So, carefully examine your individual market and consider the expenses from both a short-term as well as a long-term perspective.

13. Buying the commercial property is almost always a better long-term investment and it may be better for your company in the short term as well.

14. Get to focus on long-term

15. The main reason for the startups to move towards renting an office is the lack of funds to invest in the real estate market.

16. When you evaluate the long-term rental deposits, it is always a good idea to own a commercial real estate.

17. So, if you have sufficient resources to buy the space in the beginning, then always go for it.

18. No issues of cash flow

19. There are many benefits of owning rather than renting a property and you can easily attract investors to have a positive cash flow.

20. Buying commercial property is a long-term investment that allows you to build equity, which you can use as collateral for future growth.

21. In the commercial real estate, there is always an appreciation in value and at any time if you sell the property, be assured of a good return.

22. Avail tax benefits

23. If you buy your office, then you can avail the tax benefits to businesses that invest in a commercial real estate.

24. Also, as a property owner, you can receive tax deductions for property taxes, mortgage interest and other costs associated with purchasing and managing the property.

25. And if you decide to upgrade your commercial property, then also you get away without paying extra taxes on the extensions.

26. Bottom line

27. For a startup, it always a tough decision to either buy or rent the office space but give it a serious thinking.

28. Buying your office space could be more cost- effective as well as a contributing factor to your ongoing success.

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