Are you wondering if your business should buy its business premises rather than leasing them? Are you wondering about the advantages of investing in commercial real estate or office buildings in order to build a wealth for your company? You would like to invest abroad, but you do not know how to do it? Here’s all you need to know for a business real estate investment in the state of the art.
Buying a property: investing in its own premises
For years you have been renting your business offices, paying rents with lost funds. Why not cross the Rubicon and take advantage of the historically low borrowing rates of the moment to buy your premises once and for all?
Investing in your own professional premises is interesting in many ways. First, your business will become the owner (of a room, a floor, a building, depending on the desired surface), and will thus constitute a solid real estate patrimony. Then, over a long term, it will be significant savings in rents. And if your business continues to grow, when you find larger premises, you will simply have to resell to redeem something larger.
Finally, you will feel more free than with a commercial lease. In this way, you will be protected from triennial rent increases, the time limit in case of termination or the eventuality of your owner selling his premises and asking you to leave the premises suddenly.
A project reserved for the installed companies
However, this solution is reserved for companies that are already sailing at their cruising speed; A professional real estate purchase requires significant funds that an early-stage company does not always possess, and, in most cases, a substantial contribution to facilitate obtaining a professional credit. However, in the first years of a company’s life, the focus on growth and development must not be hindered by a real estate investment that would risk losing the accounts.
Once settled, however, it is mostly SMEs and SMIs that prefer to buy real estate from their premises, just like the professions. For a small business, the cost of renting a business premise can quickly be too high in the budget, as smaller properties are often more expensive than larger ones (based on the real estate model) Housing: renting a studio in Paris is more costly, proportionally, than a two-room apartment).
How to buy your business premises?
Once you have acquired your office, you will own it and be able to do it as you see fit. When you leave your business, for example, you will have the choice between renting the premises to another company, or why not turn it into a dwelling for your own needs or to lease it. You will find on this page all the formalities to know to do this.
For the real estate purchase of your premises, 3 solutions are available to you:
- Purchase through your company, so that the premises integrate the company’s assets (the valuation is thus increased, and the company gains a better image from the banks);
- Buy in your own name: this way, you enrich your personal heritage;
- Buy through a real estate civil society (SCI), which makes it possible to distinguish between the various assets of the company.
There remains the question of taxation in the case of real estate investment of this type. Full details on this subject are available in this article .
Investing in real estate rental property
As we found in a previous post, corporate real estate is doing well, even very well. For individuals and professionals, this is probably the best real estate investment possible at the moment, with very often double-digit returns.
For a business, it is interesting in several ways to consider real estate investment professional rental. It is, in fact, a relatively easy way to build up a company patrimony while financing the property through rent from the farm. Of course, an investment of this type requires the candidate company to have a good visibility on its activity: the borrowing period can easily reach twenty years.