Buy vs. lease commercial space in Texas – Things to consider
Having a business means that you have to make a lot of important and big decisions. One of them is definitely whether you will own your office space or lease it. There are pros and cons to both options which is why this is a tough thing to make a decision about. If you have a business in Texas or you are planning on relocating there, this is going to be one of the things you have to decide. And if you are not certain which way to go is a better way for you and your business, here is where you can read what we think about what you should do when you need a commercial space in Texas for your business. Here is where you can read what are some things that you should consider and think about before making the final decision.
Buying a commercial space in Texas
Let us start by listing a couple of things you have to consider if you are thinking of buying a commercial space in Texas. Even though buying any real estate property is a good investment in the long run, you never know what could happen which is why you have to be a couple of steps ahead. Real estate property is not as expensive in Texas as it is in some other states which is why a lot of people actually consider purchasing property in Texas. But this doesn’t make buying an office a good thing to do. How come?
Well, owning property means that you have to pay taxes for this property as well. And as you are a business owner, you are already paying some extra taxes. Do you really want to have to pay for another one? Even though taxes in Texas are not high, it is still an additional expense that you have to cover. And if you have just started running this business of yours, it would certainly be a bad idea to do this.
You do not know what the outcome of having this business will be if you have just started and you do not want to risk not being able to handle all the expenses you have. So, if you have just started this business of yours, renting a commercial space in Texas sounds like a much better idea. We cannot forget to mention just how difficult the process of purchasing commercial real estate can be. Maybe this type of stress is not what you really need now.
Pros of owning commercial property
There are multiple pros to owning commercial property which is why a lot of people actually do own one. For starters, as the property is yours, you can decorate it however you like. You can remodel it to your wants and needs for your business which is definitely going to make your business a more professional one.
And the fact that you own a commercial space in Texas is a pro itself. After you have been using this space for some time, you might decide to move to another commercial space with heavenlymove.com. To a bigger, better office. What can you do with this one that you own already? Well, you can rent it out, of course. And depending on how you organize everything, you could be earning a lot of money from renting a commercial property to another business.
This is why buying property is not a bad idea. But we suggest buying a commercial space only if your business has been working for some time already and you are confident it is going to stay stable for a certain period of time.
Is leasing a commercial space in Texas a better solution?
As you probably know, a lot of people who have businesses and office spaces are actually leasing them. Why is this so? Well, the first reason is that not everyone has the money to invest in a real estate property. Even though Texas is on the more affordable side when these things are in question it is still a big investment to make. Another reason why people decide to rent rather than invest in buying a property is the fact that they do not know what is yet to come, especially when starting a new business. If it grows rapidly or doesn’t grow at all, owning an office space can be a big issue.
This is why it is best to rent a commercial space for a certain period of time until you are certain your business’s income is able to handle such a serious investment as owning office space in Texas. When you are certain that you can afford to own one, get to searching for a property. Another reason why it is a good idea to rent rather than buy is the fact that you never know when you will decide to move to another space.
No matter when you get the idea to relocate to another office space, skilled people can assist and make your office relocation easier and less stressful. But when you buy a commercial property and you are still paying the loan for it off, you cannot rent it to somebody else. This is why it is much better to rent as long as possible and then invest when you are able to cover the whole expense without an issue.
Which is more affordable?
Both buying a commercial property and leasing it requires you to have a large amount of money on a monthly basis. And depending on where in Texas you are buying or leasing, the pricing changes. If you were to ask us which one is a better investment as the amount of money you would be paying is almost the same, we would definitely tell you to start with renting and then at some point when your business becomes more secure, consider buying commercial space in Texas. And if you are very financially unstable and you are afraid of leasing an office space, you can always rent a coworking space. There are plenty of them in Texas for this reason.