If you have a business that is running great, there will come a time when you need to expand. This will require you to have your own office space to start business with. However, in finding a new office to move into for your business deals and other needs, you might want to consider between buying the office space or renting it.

Each option has its own advantages and disadvantages. In deciding, you should put into consideration the circumstances that you\’re in, like how much your budget is, expected income or sales, and the location of the area. Here are some things that you may want to consider before choosing which option to take:

1. Cost of the office space – There is a difference in terms of cost between renting a space and buying one immediately. When you rent, this can cost you an amount which is quite lower than how much you will need to pay when you plan to buy the space. This can be favorable if you have limited budget at the moment. However, since you\’re just renting it, you will need to face the changes in the rental rate and other issues.

Buying the office space immediately on the other hand can cost you a lot of money. However, since you\’ve already bought the area, you will no longer have to worry about paying the monthly or yearly rental of the space. You won\’t be subjected to sudden increase in rental. Buying your own office space can even allow you to save money that you would have spent with paying the rent, though you will be required to pay cash up front.

2. Growth of your company – Another thing that you need to take into consideration is the possible growth of your company. During the growth phase of your company, it isn\’t advisable to purchase an office space just yet. The growth of your company may require you to look for a much larger office soon.

If you have purchased the office space, you will be forced to sell it for a price lower than the original amount upon purchase. This will cause you to incur a loss just to be able to sell out your space to allow transfer to another one. If you\’re only renting the place, you won\’t need to worry about having to sell it and just try to find another location that can cater the needs of your growing company.

3. Tax rates – It is important for a starting company or any other company for that matter to try and reduce their tax rate, as this can allow them to earn more money. Buying or renting out an office space can have different effects on how much you will be required to pay for tax.

You can ask for a deduction in the rate of your property tax and your mortgage installments. Although renting an office space can also entitle you to ask for certain deductions, the amount may not be as significant compared to the deduction entitled for purchasing it.

Gary Meurer is a business writer who likes to share information on virtual office NYC and office space NYC as well as related office ideas.

Gary Meurer is a business writer who likes to share information on virtual office NYC and office space NYC as well as related office ideas.
http://www.virgobc.com
http://www.virgobc.com

Author Bio: Gary Meurer is a business writer who likes to share information on virtual office NYC and office space NYC as well as related office ideas.

Category: Real Estate
Keywords: office space,renting vs buying,buying office space,renting office space