August 23, 2009

Disadvantages of buying



Typically a deposit of between 20% and 30% of the value of the property will be needed should you be borrowing money via a bank loan or mortgage

Mortgage / loan payments could increase

You will have to finance the upkeep and maintenance of the property

If the property loses value, it will impact on your business capital

You have less flexibility - to take on more or less space, or to move to a different location / location

Buying your own premises ties up cash flow

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