Business operators and owners always search for the best way to succeed in the long run and one of the ways is to seek office space. According to the world bank, Singapore is the second-best place for doing business. It consists of many corporates and business enterprises in it. REITs and corporations own many office buildings for investment so there are only limited offices for sale in Singapore. The correct statistics of the market segment are unavailable but It is found that 99.3% of strata buildings are located in the central region.
Buying or renting
Buying or renting offices mainly depends on the nature of the company. It has both pros and cons and it has to be considered before taking a decision.
As owner operator
If the company is at a higher level and has enough funds with the proper cash-flow then it is better to get your own office space. In buying you can detect the monthly mortgage interest from taxes as an expense. Although you can’t cut the entire payment you do with the rent but you can at least reduce the interest within the payment. In buying you become the landlord owning your own space and assets capital appreciation will also increase quickly. The building can also be given for rent at a later time and it will be one of the income sources.
As rental operator
Renting an office is a better option for smaller companies because there is no down payment when leasing office space. Renovation and fitting an office cost should be considered as a key while choosing a rental building. One main advantage of renting is that we will get a rent-free period until the renovation of the office is complete. The main cons are in the initial investment, which will be 20% to 30% of the purchase price and should be paid in cash. So, it becomes a greater barrier to buy their own office space.
When you have enough funds after a successful run, it is better to shift from rental to your own office space. For the office space for sale Singapore, it is always good to search in the rental listings or from the dedicated agent available.