For many entrepreneurs and small business owners,taking furnished office space for lease is a more practical option compared to buying a property. Although there are some advantages of buying a commercial real estate likeyou own an asset that may appreciate in value and can be sold to make some profit. But the purchase cost, capital requirements and commitments necessary to qualify for buying a commercial space are often out of reach for small business owners. For them,leasing a property or co-working space in Delhi NCR is the most beneficial option.
There are many advantages to leasing business property. Some of them are mentioned below:
Flexibility: One of the most obvious advantages of leasing a commercial property is the flexibility it provides.Whenever your lease period is over you can renew the agreement or easily move to another place that better suits your current business requirements and budget.
Location: Normally there are more leasing options in your desired location than properties on sale.Whether your business needs an urban or suburban setting, you will have more options if you are renting or leasing your office space. With more options, you can select the best location to achieve your business objectives as well as office requirements.
Lower upfront expenses: If you are leasing or renting office space in West Delhi, you will see that the agreements have fewer restrictions than atypical mortgage so you will need less upfront capital.Since you are not purchasing the property, there will be no down payments and no need fora mortgage.Lease agreements mostly require one month’s rent as a security deposit.This will give your business more liquidity as your finances will not be tied up in a long term commitment.
Fewer responsibilities: Most of the leased properties include property management services. This means you can concentrate more on your business as you don’t have to worry about office building maintenance, remodeling or any other management issues. Property ownership involves greater insurance liability than leasing an office space.
Tax benefits: Companies who are opting for office space for lease can write off lease payments and other rental expenses for tax purposes. At the same time, they can depreciate office improvement costs at a much faster rate than property owners.The tax-deductible expenses are -lease payments, property insurance and taxes, utilities, office maintenance and improvements.
No ownership risks: Your property value always depends on the current real estate market price so you don’t have the risks of being tied to an asset with depreciating value.Instead of attracting a potential buyer to sale your property, you can focus on expanding your business.
Networking opportunities: Instead of buying a property, if you are sharing your business space with other companies you will get the opportunity to interact with the like-minded individuals.Connecting with more people always add values to any start-up business or company.
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