1. Financial position
* Buying requires significant upfront costs and ongoing expenses
* Leasing needs less initial expenditure
2. Cash flow
* Buying can be more cost-effective in the long-term by avoiding rent
* Leasing can preserve cash for operations and improve short-term cash flow
3. Business growth
* Buying can suit stable businesses needing long-term benefits and customisation
* Leasing can offer more flexibility for growing businesses
4. Economic conditions
* Rising interest rates and inflation can drive up borrowing costs and reduce your borrowing power
* Lower interest rates can make it more affordable to finance commercial property
5. Tax
* Ownership can unlock benefits such as Capital Gains Tax discounts and credits, or possibly land tax exemptions
* Rent can be tax deductible; you may be able to claim goods and services tax credits
6. Risk
* Buying involves market and management risks
* Leasing shifts risks to landlords and allows easier exit
If you are ready to buy your business premises, we can help you secure finance. Click here to discuss your options.