Land is an important asset. It is a factor of production. It is needed so that to produce anything. A factory needs to have a yard where it will store the raw materials and finished products. On the other hand, a company will need to have a business premise. This will serve as the headquarters of the enterprise in question. It is where the employees and managers will work from. One can pursue landownership. Alternatively, one can decide to opt for a long term land lease. Each option has its unique benefits and drawbacks that that should be analyzed.
The number reason has to be the cost of a lease. The long-term and even short run cost of leasing cannot be compared with the cost of landownership. At the end of the day, the leasing cost will make one to save a good deal of money. With property purchasing, a lot of money is spent on acquiring and building property.
The leasing price is likely to be sensible. It is likely to be a figure that a business can afford to comfortably pay every month. However, the property purchase price will definitely be an exorbitant sum that will require bank financing. Mortgages are very expensive in the long-run. It is also important to note that interest rates usually fluctuate every year.
Landownership makes a lot of sense if there is the desire to develop a piece of property. However, if one simply wants to obtain ownership and use the structures and facilities that are already available without modifying them, leasing should be the ultimate choice. In most cases, it is not allowed to alter a leased property unless consent is obtained.
With the leasing alternative, it will be possible acquire a more expensive parcel. That is due to the fact that one will be saving on the cost. Thus, one can get more acreage for a particular sum of money. If one decides to purchase, he will have to settle for less because of the expensive cost of purchasing a good parcel.
If one has decided that a particular place is where he or his business will settle permanently, then there will be a very reason to buy real estate in that place. If one plans to stay just for a decade or two or even just for a few years, leasing is highly advisable. One can enter into a short-term or long-term lease.
One will need to find the best property for leasing. Such a property will be near vital amenities. It also has to be accessible by roads. Real estate that is near public amenities like police station and hospitals will be a good choice. One will have to enter into a leasing agreement. Rent will be paid on a monthly basis.
There are many things that a person can do with a piece of land. After all, it is the most important production factor. The others are labor and capital. With a ranch, one can rear almost every kind of domestic animal. With farmland, an individual can grow a myriad of export earning crops. On the other hand, commercial real estate can be used for many purposes.
The number reason has to be the cost of a lease. The long-term and even short run cost of leasing cannot be compared with the cost of landownership. At the end of the day, the leasing cost will make one to save a good deal of money. With property purchasing, a lot of money is spent on acquiring and building property.
The leasing price is likely to be sensible. It is likely to be a figure that a business can afford to comfortably pay every month. However, the property purchase price will definitely be an exorbitant sum that will require bank financing. Mortgages are very expensive in the long-run. It is also important to note that interest rates usually fluctuate every year.
Landownership makes a lot of sense if there is the desire to develop a piece of property. However, if one simply wants to obtain ownership and use the structures and facilities that are already available without modifying them, leasing should be the ultimate choice. In most cases, it is not allowed to alter a leased property unless consent is obtained.
With the leasing alternative, it will be possible acquire a more expensive parcel. That is due to the fact that one will be saving on the cost. Thus, one can get more acreage for a particular sum of money. If one decides to purchase, he will have to settle for less because of the expensive cost of purchasing a good parcel.
If one has decided that a particular place is where he or his business will settle permanently, then there will be a very reason to buy real estate in that place. If one plans to stay just for a decade or two or even just for a few years, leasing is highly advisable. One can enter into a short-term or long-term lease.
One will need to find the best property for leasing. Such a property will be near vital amenities. It also has to be accessible by roads. Real estate that is near public amenities like police station and hospitals will be a good choice. One will have to enter into a leasing agreement. Rent will be paid on a monthly basis.
There are many things that a person can do with a piece of land. After all, it is the most important production factor. The others are labor and capital. With a ranch, one can rear almost every kind of domestic animal. With farmland, an individual can grow a myriad of export earning crops. On the other hand, commercial real estate can be used for many purposes.
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