As one of the country’s leading industrial property specialists, we like to ensure that all our prospective tenants are fully informed of the pros and cons of buying and leasing before making a decision. Here are some points to consider before making your mind up.
Equity: As your ownership stake in the premises increases throughout the mortgage period, you have greater leverage for future financing.
Upfront investment: You will have to make a sizable down-payment that can tie up a large chunk of cash.
Upkeep costs: as the owner of your industrial property, you are responsible for all maintenance and repairs.
High real-estate prices: depending on location, you may not be able to afford the building you want and be forced to downgrade.
No flexibility: if you want to upgrade or move on, you’ll have to sell your current property first.
No down-payment: a leased industrial property will normally require a deposit and a period of rent to be paid up front. This is far less than that required by a mortgage.
Increased liquidity: since your company assets aren’t tied up in real estate, you can use them to invest in your company’s growth.
Lower upkeep costs: if your leased property needs maintenance or repairs, that responsibility falls to the landlord.
Tax deductible: unlike a mortgage, the whole of your monthly rent (plus ongoing costs) can be deducted from your end of year assessment.
Flexibility: with a leased property, you are free to move on either at the end of your lease, or through agreement with your landlord.
No chance to gain equity: leasing an industrial property means that the money you pay will not accrue equity for your business.
Higher monthly cost: most leases cost more per month than a mortgage would for the same building. However, most leases also include other benefits in that figure, which you don’t get with a purchased property.
If you’re looking to lease an industrial property either in Liverpool or elsewhere in the UK, call Centaur Properties today on 0845 872 6334. A member of our team will be happy to talk you through the various properties we have available before providing you with a free, no-obligation quote.