SHOULD I BUY OR LEASE MY OFFICE SPACE?

As aspiring Entrepreneurs we will all have to face this dilemma at some point of time. Whether to have an own space or to rent a space to build your business is a crucial decision.There are pros and cons to both the options, and the decision requires analysis and planning. You have to chose the best option for yourself at the right time to make decisions and investments that are profitable for you in the long run.

Few years down the line it might come as a surprise to you that buying the office space that you have been working in for years would have been a smarter decision than leasing.

Buying commercial real estate gives you more upside when compared to leasing commercial real estate. Commercial real estate is a long-term asset that stores its value fairly well.

Advantages of owning a commercial real estate are;

# When you own commercial real estate you can take advantage of asset appreciation. This appreciation represents the increase in the value of your property over time.

## The beauty of buying commercial real estate is that your monthly loan payments help you build equity. This is because a portion of those monthly payments goes towards paying down your principal loan amount. This is in contrast to leasing commercial real estate since lease payments go to the landlord and no principal is paid down.

### Good rental income.

#### Tax deduction in the form of interest, depreciation,non mortgage related expenses.

Although whether you should lease or buy the property depends on various factors like your income level ,preferred location , rate of interest and many more,buying commercial real estate is a better option than leasing if you plan to stay in the same location for 7 or more years. If you plan to stay in a single location for less than 7 years, then leasing might be a better option.