Your office is more than just a place to work—it’s a reflection of your business, your brand, and your company’s personality. As a business owner, you’ll eventually face a crossroads, whether it’s because you’re just starting out, your lease is up for renewal, or your business is changing size. When that time comes, you’ll have to choose: should you rent or buy?
You’ll be happy to know, I’ve been down this rabbit hole myself. In fact, after years of renting, we’ve just purchased our own office space—a decision we didn’t make lightly but one we’re pretty excited about.
It all kicked off when we saw an opportunity to put our superannuation capital to work. By using those funds towards the purchase, we stretched our purchasing power. Now, we have the added benefit of our business paying rent to our super fund—a real win-win.
Beyond the financials, there’s a strong sense of pride in owning something that’s ours. This space is designed to fit our needs and reflects the personality of our business. It’s more than just an office—it’s a place we can grow and be happy in for years to come.
Our new space has a funky fit-out, flexible work areas, and a boardroom with ocean views. And hey, being smack in the heart of Torquay, near our favourite surf shops, breweries, and cafes, doesn’t hurt either.
But aesthetics and a fantastic view weren’t the only deciding factors. When we started thinking about our office situation and whether to rent or buy, it became clear that our current space was no longer ticking all the boxes.
There were some real brain-crunching moments and hard facts that helped us make this decision. So, if you’re a business owner stuck between the flexibility of leasing or the long-term security of purchasing, it might be time to consider the benefits of each.
Rent or Buy
The Pros of Owning Your Business Premises:
POTENTIAL BUSINESS VALUE:
Does your location affect the value of your business? For industries like hospitality, location is everything. Owning your premises can secure your business’s future and even increase its value when it’s time to sell.
LOWER ONGONG COSTS:
Rentals come with security deposits, annual rent hikes, and the occasional heart-stopping email from your landlord about new terms. Ownership eliminates most of these worries.
EXIT STRATEGY:
If you plan to sell your business, having a property to go with it can give you more flexibility and maximise your options. Alternatively, if the incoming purchaser doesn’t want to buy, you have the flexibility to design a lease that suits both your and their needs.
YOU’RE THE BOSS:
If you own the property, you’re not at the whim of a landlord. You can upgrade, redevelop, or just enjoy knowing that every rent payment is building equity for you, not someone else.
Keep in Mind: If you’re planning to buy a commercial property, it’s important to visit your local council to check the required permits for any fit-out or improvements. You’ll likely need a building or planning permit, and it’s essential to confirm the site suits your intended business use.
The Pros of Leasing Your Office Space
FLEXIBILITY:
Leasing offers a much higher level of flexibility. If your business needs change, you can scale up, down, or relocate without the headache of selling a property.
LESS UPFRONT COSTS:
Leasing typically means lower upfront costs compared to buying, leaving more capital to invest directly in your business. That means more opportunities to grow and innovate without a significant financial commitment.
MAINTAINANCE IS SOMEONE ELSE’S PROBLEM:
When you rent or lease, land tax, building maintenance, and repairs are the landlord’s responsibility, not yours. No unexpected costs when the air con goes bust, no frantic calls about leaky roofs.
At the end of the day, the choice between renting or buying is personal and specific to your business. It’s not a one-size-fits-all answer, but with some careful consideration, you’ll get closer to making the right decision for your business.
If you’re feeling stuck, don’t worry—you’re not alone. It’s a big decision, and there are no easy answers. But, with a bit of clarity on your goals, financial standing, and future plans, you’ll be able to find the best option for your business.
A Few Final Questions to Ask Yourself
So where to from here? If you’re still on the fence whether you should rent or buy, answering these questions might help you clarify your decision:
- Do you prefer the flexibility of a lease or the security of a mortgage?
- Do you have unused capital, or would buying stretch your finances too thin?
- Is your business growing? Will you need to scale up or down soon?
- Does owning your business premises enhance your company’s value?
- Could your capital be better spent elsewhere? Sometimes, investing in a lease and customising the interior to suit your brand is more cost-effective than purchasing a commercial property outright.
Why the change
As for us, initially, renting was a fantastic decision as our business grew in its developing stages. This may very well be where your business is at right now.
But beyond the spreadsheets and financial forecasts, there’s an intangible element to this decision, too. For us, it boiled down to more than just financial benefits and avoiding lease renewals.
The real kicker – We love Torquay! The Surf Coast is not just where we work; it’s part of who we are. So, buying an office here felt like the natural next step. We wanted to grow our business, and owning our office here gives us peace of mind knowing we’ve secured our spot in the community we love. It wasn’t just a financial decision—it’s a lifestyle one.
If you’re still wondering whether to rent or buy your office space, feel free to reach out to me or the team at Finspective. We’ve been there, and we can help you through it.
For now, I can’t wait to get settled into our new office space. The ocean views might be distracting, but hey, I’m happy to work with that!
When your ready to take the next steps, check out our Business Loans page for more information. From there you can book in a quick chat with one of our lending specialists.
Any advice on this site is general nature only and has not been tailored to your personal objectives, financial situation and needs. Please seek personal advice prior to acting on this information. Any advice on this website has been prepared without taking account of your objectives, financial situation or needs. Because of that, before acting on the advice, you should consider its appropriateness to you, having regard to your objectives, financial situation or needs.
