Fort Bonifacio For Sale
Many businesses reach a point in which it would be beneficial for them to purchase.There are a few common factors that should be taken into consideration when buying. We will take a look at some of the pros and cons to purchasing.
Cash Outlay - Typically if you are preparing to purchase an office, you can expect to make a down payment of between 10% and 25% of the purchase price, based upon on the lender and your credit. When you lease office space you won’t need to put down nearly as much. With good credit, the typical outlay is the first and last months rent which is only about 10% to 15% of the cash outlay recommended when purchasing office space.
Opportunity Cost – With the large outlay of cash required to purchase office space, the opportunity cost of that money needs to be taken into consideration. What return would you expect to receive on that money compared to the return you would expect to receive if you invested the money back into your business or into other investments?
Fixed vs. Variable Cost – When you buy office space, you have a excellent idea what your costs will be over the long term. This is particularly true if you have a long term fixed rate mortgage. If you lease office space, the market will dictate what you will end up paying for rent over the long run.
Growth Considerations – The growth phase of your business should be a main consideration in making the lease vs. buy decision. If your company is relatively new and/or in a high growth mode, leasing would allow more flexibility and fewer constraints to that growth. On the other hand, if your company is mature and stable, buying office space is great way to meet your future office space needs.
Property Management – You’ve heard the expression, time is money. If you own office space, it needs to be managed. You can either hire out the function or do it yourself. Many businesses with long term growth plans buy more office space than they require and rent out the expansion space. All the more need for good property management.
About the Author
KMC MAG Group Inc. Philippines, is the fastest growing and most trustworthy commercial and residential real estate brokerage firm. The firm also handles Fort Bonifacio For Sale, for addtional information please check The KMC MAG Group Inc Daily.