Moving into your own business premises | property
Mar 07 2006
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.