Lease or Buy? Your Business Property Decision In Adelaide Lease or Buy- Your Business Property Decision In A | Page 16

 No passive income: You can't be the landlord and thus cannot collect
rent from others, losing secondary income you could gain from owning
property.
 Rent is expensive: Your monthly rent payments will usually exceed
mortgage payments on the same property. The typical triple-net lease
agreement makes tenants responsible for monthly retail insurance,
property taxes, utilities and maintenance costs. When added to the lease
payment, your costs are greater, although after-tax costs depend on the
situation.
 No control: The lease may have restrictions and even early termination
clauses that hamstring tenants' ability to control the rental space. You
have no control over rent hikes when the lease expires. And if you go out
of business, you must continue paying rent or face penalties.
References
Business premises | Supporting Business in South Australia, Retrieved 16 June,
2019 from,
https://business.sa.gov.au/running-your-business/Business-
essentials/Business-premises
Adelaide office property market surges: report | Commo, Retrieved 16 June,
2019 from,
https://www.commo.com.au/news/2019/04/03/adelaide-office-property-
market-surges-report/1554270240
Commercial Real Estate for sale & lease in
Commercialproperty2sell, Retrieved 17 June, 2019 from,
Adelaide,
SA
|
https://www.commercialproperty2sell.com.au/real-estate/sa/adelaide/
By NITA ARORA-PARKES . (2015) | Lease or buy? Your business property
decision | My Business, Retrieved 17 June, 2019 from,
https://www.mybusiness.com.au/sales/177-lease-or-buy-your-business-
property-decision