Any business needs to consider with a corporate office in Kolkata whether to buy the property or whether to lease. It is not just if you are starting out with a new business. Even businesses that are established might weigh the advantages of each to decide what is best for them. Two major factors that need to be weighed are the benefits to be gained from each option and the capacity of the business. Here is a look at some of the things you should ask yourself and your expert advisers.
Questions to ask yourself to identify facts to consider
- Do you have the money to buy? When you are thinking of buying a property you need to have a down payment that is between 10% to 25% of the whole price. That is a significant number for a lot of businesses. When you lease you need maybe just a couple of months in deposits which is a figure that is a lot less than the down payment.
- Is it a good time to invest this kind of money? You need to ask when you look for a commercial space for sale in Kolkata if the market is doing well, your business is doing well to manage this kind of investment if you choose to buy.
- Is the business better suited for variable costs from leasing or fixed costs from buying? When you a property you have fixed costs in the shape of that long-term fixed mortgage. This will need to be added on to your overhead costs but at least you know exactly what the cost is going to be each month. With renting or leasing you face costs that might vary. For the length of the lease you know your rent, but when that lease is up you have to negotiate a new one that is likely going to have a rent increase.
- What is your growth potential? When you are a new or start-up business you have not determined yet what your growth potential is. This means leasing makes more sense right at that time. You have more flexibility and if the business does grow a huge amount you can easily move into larger premises for your corporate office in Kolkata.
- Are you prepared for the financial and legal ramifications of ownership? There are consequences legally and financially to being the owner of the property. You should make sure you seek advice and guidance about what that is, what it means in terms of taxes and so on.
There are a lot of things to think about when you are considering a commercial space for sale in Kolkata. Each business owner will have to make a choice depending on their budget, situation, short and long-term goals and more. It is a good idea to have some experts and seek their advice so you do not jump into anything you are not ready for.