Renting or Investing in a Property for an Office?

This is one of the everlasting dilemmas for the majority of small business owners and it really depends on their will. But which one is the better option? On one hand, renting does not have long term implications if the business needs to move elsewhere (maybe because it grew or simply because of finding a better location), but it has fluctuating costs as the landlord may want to raise the price or other taxes may occur. On the other hand, investing in a property may be too expensive for the present capital of the business, but the place will still be yours when you retire, so you can rent it to other people and keep it as an office space or you can help your children with their start in life by giving it to them. Either way, the place will be your property and if you decide to close your business, you can do whatever you want with it.

Renting an office space

The pros here would be the fact that you can choose a space in a central area, easy to access and with better visibility.  The fact that it saves you some time that you can invest in managing your business and the fact that your money is not blocked in real estate investments. On the other hand, the costs are not fixed, they fluctuate depending on many issues and you will not be investing in your retirement, but in someone else’s. You can always consult a mortgage broker South Melbourne if you thing that investing in a property might be too much for your finances and you can see what solutions you can find together to fit your needs.

Investing in a property

On the pro side, you will have a place of your own with fixed costs and some tax deductions such as property taxes, mortgage interest and so on. You can also have an extra income, because you can rent the extra office space to someone else. You can find some help and advice in real estate investment if you visit this link.  Also, this can contribute to your retirement savings one way or another, because you can always sell it and close the business. However, buying an office space does not offer flexibility in terms of growth, because if your business develops more than the space allows, you might be forced to sell it and buy or rent a bigger one, which is also time consuming.  In addition, it will initially be expensive, as you need to pay more in advance because of various reasons and among them are repairs and improvements.


Deciding over buying or renting an office space remains hard, as it depends on what kind of business it is, how much you can afford and what plans you have for your future, personally and professionally. For a small business, working from home can be a great option at least at first.

Post Author: Tim Frawley