If you have a shop for lease in Gurgaon, many things will come to your mind. But today, all your queries will come to an end. Thank this blog as it brings you the advantages and disadvantages of leasing.
Advantages of leasing
Location- In Gurgaon, many properties are available for lease rather than purchase, so leasing provides businesses with more options. It is an opportunity for people to occupy the space in Gurgaon where they can’t afford to buy a shop.
Flexibility- Leasing provides the benefit of flexibility to the people who may need to expand or relocate in the future.
Availability of Cash- When it comes to leasing, it requires less cash than buying! Businesses that lease a shop may have more funds to invest in the company’s products.
Source of Financing- Small shops that struggle to get traditional financing may get benefitted from leasing.
Tax Benefits- The occupancy cost of leasing are fully deductible.
Keeps focus- Leasing will help users to focus on their primary business without the distraction of property management.
Disadvantages of Leasing
Cost- The cost of leasing may be more in the long run. Shops with solid earnings and enough capital may be able to save money by taking advantage of the tax benefits from the ownerships.
Loss of appreciation-The tenants can not get benefits from property appreciation in the case of leasing.
Contractual Penalties- If the property becomes obsolete or the business occupying the space shows no profit, the tenant must continue to pay rent or face penalties.
Conclusion
The above-mentioned points are the pros and cons of leasing; hopefully, it has satisfied all your doubts. If you wish to lease or buy office space in Gurgaon, your decision should come after combining finances and taxes. If your organization is stable and has enough cash in hand, purchasing a property will make sense. Or, if your organization is on the path to growth and development, then leasing office space in Gurgaon will make proper sense.