smallbusiness.co.uk: Helping your business think big

in association with Abbey

It can be an exciting milestone for your business if you decide on buying your own property. Cost will obviously play a part in your final decision.

The advantages of owning your own business property include:

• Mortgage repayments can be cheaper than renting
• The potential to profit from any upturn in value if you decide to sell
• Once the mortgage is paid off, the business will own the property
• You have more freedom to do what you want with the property
• You can move when you like as you won’t have a fixed lease
• It could provide an income stream if you let all or part of the building.

Disadvantages to be considered include:

• Large capital outlay for initial investment
• Need upfront cash for professional fees, searches, stamp duty etc
• If property depreciates in value, you could be left in negative equity
• If you can’t keep up repayments, the property could be repossessed
• Ongoing costs of repair and upkeep
• You will be responsible for the safety of the building and the people in it, including meeting Fire and Health and Safety regulations.

Tip: It may seem obvious, but when you move, don’t forget to give all your customers, bank, insurers and suppliers your new contact details.

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