Are you tired of paying rent? When prices of real estate trade they soften, I think that it is the perfect time to purchase its own office space. But before you call an agent, remember that owning vs. renting is not a simple decision that can be done without many issues to be taken into account.
Owner of Office can be a fantastic feeling: paint the walls, rip up carpet and make your space reflect your corporate culture and who you are. But owning an Office, or any real estate, is also a distraction. So if you have problems such as taxes and roof repairs, all warm fuzzies in the world are not for them.
Here are the main questions to consider before making the leap from tenant owner:
Docan afford the time? A lot of entrepreneurs would rather be driving with an estate agent roots that sit at their desks. But your business is not growing while away thinking about access and road carpet colors. Find the perfect Office can easily become a process of three months, during which time we will be with agents, bankers and decorators rather than staff, suppliers and customers. Domay allow the transfer? Get several thousands of pounds of desks, computers, telephone systems and archive moved, even a short distance, can be problematic and expensive. Getting everything set up again and operational can I work interrupted for days. The budget of $1,000 and a day interrupted for every 1500 square feet. Docannot afford extras? Do not compare rent with option to a mortgage payment. The holder of the mortgage pays a lot of things that the lessee may not, including taxes on property, maintenance of the common area and insurance costs. Even a small office can accumulate extra several hundred dollars more per month. A good estate agent roots must be able to help these rates of the project before reaching a contract of sale. Docannot afford surprises? Often the most disappointing part of property of the Office is to keep repairs and maintenance. Turn off air conditioning in July, or a hail storm destroyed its roof, can such instant charges afford? Do if the two things in the same month, could recover its business from the success? Doyour personal credit handle the load? Unless you have an exceptionally large company, it is likely your personal credit rating will be considered for and the impact of any mortgage loan for the company. If already extends to credit cards, or you can see an imminent need to borrow for the registration of College for their son, putting another massive debt on your personal credit rating can be a bad move. Docan afford to work? Proprietary office space is an unpredictable adventure. Tax consequences, irregular expenditure and general discomfort fall directly on you and your staff. Someone working can extract these distractions course a few hours each week. Plan in advance how such work is in line with its other activities.Lack the purpose of this list are complicated formulas for the calculation of elements such as rates of capitalization and the return on investment. If these things are important to you, consult a tax advisor and try a crystal ball. Can tax assessor make real estate work to its maximum advantage and the crystal ball? This is to predict what will be the building is worthwhile when you are ready to sell it.
No one can say with certainty how long is going to use the building and what the market doing when you want to sell it, so instead of predicting the future, focus on the present. Are you going to be better day by day, month to month paying the various costs of property? Or the simplicity of being a client makes more sense?
David Worrell is founder and Executive Director at AmeriStart and writes the money matters blog on AllBusiness.com.
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