Consider these 6 pros and cons before making a decision.
Are you a business owner looking for an office in Kolkata?
Whether you are starting a new business or expanding an existing one, if you’re looking for an office space in Kolkata, it’s natural to have this question.
What’s best for my business? Buying an office? Or renting one?
In the last 19+ years that we’ve been in business, we’ve had a lot of customers ask this question.
To help you out, we’ve put together this unbiased article with pros and cons of both options.
Read on to decide what’s ideal for you.
Top 3 benefits of buying an office in Kolkata
1. Buying an office is a great investment for your business
It is a known fact that real estate is considered to be one of the best investment options. Buying an office ensures that years from now, you can sell the office at a higher price and earn profits. Along with investing in your business idea, a lot of business owners also think it’s wise to invest in an office they can work out of.
2. Save money on rent
A lot of people believe that repaying loan you take from a bank to buy an office for your business is better than paying rent for years. This way, you not only have the option to sell the property and earn profit after a few years. But also have the liberty to live debt and rent-free once you’ve repaid the loan.
3. Work without interference
If you’ve ever rented a house or office, you’ll know that landlords aren’t the easiest people to deal with.
Renting an office means…
You cannot always make the modifications you wish to make
Unannounced visits by the landlord
Unwelcome questions about your business and staff
…and so many more issues!
If you have an office of your own, none of these problems would exist. Which means, you can focus all your energies on your business without any worries.
Top 3 downsides of buying an office in Kolkata
1. Invest the money in developing your business or product, instead
Properties are a massive investment and if you’re thinking about buying an office, you’ll need to invest a lot of money. This is not the wisest idea, especially if you’re starting a new business.
2. You’re stuck in the same location for a long time
When choosing an office for your business, location plays a very important role. It should be easily accessible by your employees as well as your clients. There are also many things about a locality you come to know only after having spent some time there.
- Does it get flooded during rains?
- Is there ample parking for employees or clients?
- Is it easily accessible by public transport?
- Is public transport available after regular work hours?
- Is it safe during late evenings, in case employees have to stay back after office hours?
These are questions you don’t always get answers to after 1-2 visits to the office before buying it.
Once you’ve bought an office and things aren’t the way you’d wanted, moving to a new place would be harder.
3. Expanding your business will be difficult
This is especially true if you are starting a new business. When starting out, you might have an idea about how quickly or slowly your business will grow. If things don’t go according to your timeline, you might be in trouble.
If your business flourishes quickly and the office isn’t as large as you need, you’ll have to think twice before expanding the team.
If the business doesn’t grow as quickly as you’d expected, you’ll regret investing money in the office and wish you’d put it in developing your product instead.
Top 3 benefits of leasing an office in Kolkata
1. Start your business with minimum capital
Starting a business is a huge investment. If you add buying your own office to the list of expenses, you’ll need a lot more capital than you would if you decide to rent an office, instead.
Renting an office is certainly a smart way to utilise money.
2. Get access to prime location with lesser investment
This is especially true if your business is location dependent. Having an office in a prime location means easy accessibility by clients. It also gives you great visibility, which might bring in more business.
Renting also gives you the option to explore an area you couldn’t afford buying an office in.
3. Avoid long term commitments
Buying an office is no easy task. There are so many things to look after. And there’s always the possibility of things not turning out the way you’d want them to.
By renting an office, you can easily move to a new locality, whenever you want.
Top 3 downsides of leasing an office in Kolkata
1. You have to keep money aside for monthly rent
With a rented office, you have to set money aside each month for rent. This should, ideally, come from your monthly earnings.
2. Having to follow rules you won’t always like
Renting a place almost always comes with a crazy set of rules. Some of which you won’t necessarily like.
3. Keeping up with yearly rent increments
The sad thing about renting a property is the yearly rent increment. While it might not always be justifiable, the landlords don’t usually budge. The fact that most people who own offices give it on lease primarily to earn profit makes negotiating even more difficult.
19+ years of experience in the real estate business and interaction with thousands of clients have given us a fair idea about the pros and cons of buying vs leasing an office in Kolkata.
I hope you find this unbiased article useful when making a decision.
Are you looking to rent an office in Kolkata? Thinking about buying an office, instead?
Let Modern Properties help you find the office of your dreams.
Get in touch with us here. Or visit www.modernproperties.com.
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