Are you finding it arduous to decide whether you should buy or rent a warehouse in Bangalore? We can understand since both have some pros and cons, making them a hard choice.
However, you need to make the decision. Hence, we have developed a blog to help you make an informed decision.
Buying A Warehouse: Pros And Cons
Pros
Flexibility
Flexibility comes while owning a property. Before making any permanent changes, you do not have to seek anyone’s permission. You can build extensions, increase the space’s storage capacity, install a pallet racking system, and optimize end-to-end warehousing solution, thereby facilitating the growth of the business.
Equity
Although buying a commercial property is similar to buying the residential one, this investment potentially grows in value. When your business grows, the worth of the property increases. This way, you can use it as loan equity to help grow your business. Moreover, you can sell your property whenever capital is required.
Stability
You also tend to acquire the stability that comes with a mortgage. Rental rates increase annually or during the renewal of the new lease. However, mortgage repayments fluctuate lesser, allowing for accurate financial planning for the future of your business. It also gives you the stability to grow your business from one location.
Cons
Building Maintenance
Buying a warehouse in Bangalore makes you responsible for organizing and funding all building maintenance, including council rates and other annual costs. It is not the additional costs that you need to factor in. However, it requires time and organization that is better spent on growing your business.
High Upfront Cost
Buying a warehouse incurs high upfront costs of the deposit. You can expect to pay from 20 percent to 40 percent upfront. The lack of capital availability is due to large deposits and could seriously stunt the growth of a less established business.
Renting A Warehouse: Pros And Cons
Pros
More Options
When you think of choosing a warehouse for rent in Bangalore, you tend to get more options to choose from. This way, you can find a suitable warehouse for your business in terms of size, amenities, locations, end-to-end warehousing solution, and many more.
Free Building Maintenance
The general building maintenance is the responsibility of your landlord. Therefore, you can put all your time and money towards the growth of your business.
Flexibility
Renting your warehouse allows you to move to more prominent locations when the business grows. Moreover, it does require more extensive deposits, which helps you to save significant capital. This way, you can take advantage of more growth opportunities or use the available money to develop your business.
Cons
Fluctuating Rates
Renting a warehouse means fluctuating rental rates. This makes it more challenging to plan for future costs and growth.
Unreliable Location
You must relocate your business when you do not renew your lease. It costs you financially and creates stress as you have to move on short notice.
Bottom Line
Most business owners opt for a warehouse for rent in Bangalore since they consider it a lower-risk choice. It helps you save money on down payment, repairs, and maintenance. Moreover, it is a flexible option and enables you to move to their desired location. Therefore, if you are looking for a warehouse, highly consider renting one for your business.