July 31, 2021

What to consider when buying or renting a property to work

What to consider when buying or renting a property to work

When a professional decides to set up their own space to work, they need to deal with some issues before and after finding a property to work. This is because, if until then he was only responsible for carrying out his work, now he is also responsible for the administration and management of his business.

Therefore, the decision to rent or buy a property in bahria hills , to work is necessary to consider the stability of the enterprise and fit in with the projections for the future.

As such, for some people shopping is an investment and a safer option, while renting is an unnecessary expense to the bills.

On the other hand, for others, opting for rent is to leave the possibilities for expansion open without compromising the business budget.

Well, you can already see that this is not an easy decision to make. To help you with that, we’ve separated some factors to consider.

Arranging finances

Before making a decision, it is important that you take the time to review the state of your budget. Here, you need to separate your personal finances from your business finances. That’s because, your choice will depend on the perspective.

When it comes to personal finance, buying a property in an expanding neighborhood, that is, one that is receiving investments from the government and the private sector, is always a good choice.

From the point of view of the company’s finances, it is necessary to analyze whether it is generating enough money to buy the property and also maintain the reserves necessary to continue operating during possible crises and for other future investments. Otherwise, renting is the best option.

Putting everything on the scale

What to consider when buying or renting a property to work

As with almost every decision we make, there are pros and cons. Therefore, it is necessary to put all of them on the scale and see what has more weight in your future.

Here it is worth making an analogy with dentistry:

Imagine that you are a patient who needs and wants to undergo two aesthetic treatments, a dental implant and a tooth whitening. The questions of how much a tooth whitening costs and how much a dental implant makes this a difficult decision.

Dental implants are more urgent, however, they may have some problems, such as rejection, and need to be done again.

While tooth whitening is cheaper and can be done by you right away. However, it has no permanent results and you will need to do it again.

So what do you choose? This decision will depend on urgency, available budget and future results.

This same consideration needs to be made when choosing between renting or buying a property.

When is the best option to rent?

This is a good alternative for professionals who are beginning their careers or who are setting up a space to work for the first time. As they do not have a fixed clientele, it is not yet possible to determine whether that location suits their profile and the profile of their audience.

Furthermore, renting does not compromise your working capital right from the start and guarantees a bigger budget for future improvements.

Rent is also more flexible, as if your business grows and you need more space, it’s easy to move to a larger property.

Rent advantages

  • The lessee is not responsible for documentation, taxes and maintenance costs;
  • Ease of terminating the contract in cases of change;
  • Possibility of sharing the rent with other colleagues (if subletting is provided for in the contract).

Disadvantages of rent

  • In some cases, the lessee does not have the autonomy to make renovations and adaptations;
  • Annual readjustment in the rent amount;
  • The landlord can request the vacancy at the end of the contract. When this happens, the tenant needs to move in a hurry.

When is the best option to buy?

Buying a property can be a viable alternative for the most experienced and established professionals in the market. That could be the investment and security they need.

One of the advantages is that once you become the owner of the place you work, you can use it however you like. Therefore, it is possible to carry out renovations, adaptations and expansions without the need for prior authorization.

Advantages of Buying a Property

  • The property becomes an asset of your company, that is, you can sell or rent it during a crisis or if you need to change space;
  • Depending on where the property is located it is a long-term investment. For this reason, it can grow in value over time.

Disadvantages of Buying a Property

Buying a property is an investment, but it also compromises your budget. Thus, depending on your financial situation and the amounts involved, the expenses with a loan or purchase may be higher than the rent.

If you have recently started working alone or are new to the profession this may be a risk not worth taking.

Depending on your planning, buying can compromise your expansion plans.

Planning is everything

With this content, you can see that choosing the perfect alternative for your business requires a lot of planning. So don’t be in a hurry, do extensive research and put all your considerations at the tip of your pencil.

Imagine that you are the patient of the example we gave earlier:

Before having a root canal you should not only stick to the need, but also to what will bring the most cost-effectiveness (obviously choosing a trustworthy professional takes precedence over prices).

Therefore, researching by price channel treatment, for example, is fundamental in the considerations stage.

Text produced by Estela Lima, editor of the company Clinical Ideal