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Advantages to buying your own premises
Many small business owners who are just setting up a company seek advice about whether or not to buy their own premises.
Financial experts have different opinions as to whether buying premises is a wise idea or not. The fact remains that many individuals who have just started to set up their own business simply do not have the capital to buy their own premises and are therefore forced to rent. There is nothing wrong with choosing this option but, if you are lucky enough to have the capital, you could experience numerous advantages from buying your own premises. The main advantages are as follows:
• A greater sense of control: if you rent your premises, you may not feel that you can use the building in the exact way that you desire. However, whilst restrictions such as planning regulations still apply when you buy instead of rent, you will feel a greater sense of freedom to use it how you want to, particularly with regards to flexibility. With renting, you are restricted by a contract and may not be able to move quickly without incurring additional fees
• A greater sense of security: with rentals, you can feel anxious as to how things will play out at the end of your contract. If you decide to make a purchase, you will feel more secure in the long-term
• You will be able to have more control over the management side of things with regards to the physical structure of your premises. If a repair needs to be made, you can take charge of it and make sure it is done quickly and efficiently.
• You will be able to let the premises in the future without becoming involved in tricky financial situations. This may be particularly useful if your company expands in size unexpectedly and you decide to switch location. If you decide to sell the property in the future, you could also make a nice profit if your building has increased in value during your time there. If you rent your property, you will miss out entirely on this element of profit.
• Additional tax benefits can arise from buying your own premises. You should ask a professional finance company for advice about such tax issues for small business owners.