Buying Commercial Property: A Smart Move For Kiwi Business Owners
As commercial rents slowly rise and property availability tightens, more Kiwi business owners are realising the long-term benefits of owning the building they operate from.
Buying your business premises is more than just putting a roof over your head – it's a strategic investment. Not only can it give your business greater stability and security, it can also deliver strong long-term financial rewards. With control over your operating space, you're no longer vulnerable to rising rents or landlords changing terms. Instead, you build equity in an appreciating asset that contributes directly to your balance sheet.
'When you buy, you lock in your location, take control of your fit-out and layout, and potentially even open up rental income if you're not using all the space,' says Richard O'Brien, from NZ Commercial Property for Sale listing site NZCommercial.co.nz. 'You're essentially paying yourself instead of a landlord.'
Ownership also allows for better long-term planning. Businesses can invest in their premises with confidence, knowing those improvements will benefit their own property value. And with demand for quality commercial spaces continuing to grow in key regions, a well-positioned building can become a valuable asset in itself.
In many cases, business owners find the cost of ownership - with interest rates, outgoings, and maintenance - is often comparable to or even less than leasing, particularly over a 10 to 20 year timeframe.
' Buying a Commercial Property isn't right for every business,' says O'Brien, 'but for those in stable industries with long-term plans, it can be a game-changer. You gain control, grow equity, and give your business a physical asset that can appreciate over time.'
If you're a Kiwi business owner with solid trading history, decent cash flow, and a long-term view, now could be the right time to consider investing in your future by buying your own premises. Talk to your accountant or advisor – and start looking in the right locations.
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