Is Buying or Leasing Commercial Real Estate a Viable Option? - Bhutani Group

One of the most important questions that run through the mind of any investor is whether to buy or lease a commercial real estate property in India. There are a variety of benefits associated with both options involved.

There is no right or wrong answer when it comes to whether to purchase or lease a commercial real estate property in the minds of a property seeker. The decision whether to buy or lease would be influenced by a lot of factors such as the capital expenditure involved, the business equity, and most importantly the fund in your bank account.

There has always been a hot debate on whether to buy a property or have a commercial property on lease.

Owing is always a good option for any business house for the purpose of setting down roots in a community. Purchasing a commercial real estate property can help an investor to build equity structure into his operations.

With the current interest rates which are quite low, it is a great opportunity to purchase a commercial real estate property compared to the previous times.

When an investor owns his own commercial real estate property, he can set up his own business to suit his requirements as per his needs while maintaining his equity.

Every Business needs premises, whether to buy it or rent it completely lies at the discretion of the investor who is investing in real estate.

Buying Commercial Property

- One of the main advantages of buying commercial property from a real estate company is the ownership status. One can create a fit-out and design that perfectly fits one business needs.

- If a commercial property is quite big in space, one may look at subleasing to other businesses in order to generate some revenue for one’s business.

- Any ready commercial property is considered an asset that may be sold or borrowed against getting funds if needed for the business.

- One of the most obvious limitations of buying commercial property is the upfront cost associated with purchasing the property. This can definitely be a big dent in the financial status of any business enterprise.

- Keeping in mind while buying a commercial property one must note that the business will stay in a fixed location which could have a negative impact on the business if the majority of the customers if are not located within the vicinity.

- There comes a case of increased liability when owning your own property as it is likely to come with costs such as mortgage and maintenance costs. You can also invest in office spaces in Noida for better investment purposes.

Leasing Commercial Property

- Providing greater liquidity is one of the advantages which allows your business to quickly adapt and respond to changes.

- Leasing also gives the required flexibility to move to locations that are closer to one’s clients resulting in downsizing or upsizing with much ease. It is also very easy to find a new commercial property on rent rather than purchasing it.

- Leasing always is good in terms of fewer outgoings as the owner of the premises has to maintain the building and fixtures.

- Lease property in Delhi NCR might loss of one’s potential on securing long-term investment potential.

- One of the biggest disadvantages is the yearly rent increases in the case of leasing commercial properties.

- Leasing the property will prohibit one from acting as an owner and generating leasing income from the same.