Is it better to buy or lease commercial properties in Mount Isa
The Mount Isa commercial property market has a range of buying and leasing options. If you’re looking to run your business in Mount Isa, one of the most important decisions you need to make is whether to buy or lease your premises. It depends on your specific business needs.
The advantages of buying Mount Isa commercial property
The advantages of buying include:
- buying a business asset that can increase in value over time.
- the ability to more easily make changes to the property to suit your business needs.
- no ongoing finance costs if you can finance the purchase without borrowing.
- you can choose whether to use the premises for your business or lease it out to tenants as an investment.
- you will be able to stay at the premises indefinitely.
- you won’t have to answer to a landlord or property manager.
Buying a Mt Isa commercial property can be a better option than leasing if the advantages of doing it outweigh the advantages of leasing.
The advantages of leasing Mount Isa commercial property
The advantages of leasing include:
- low (or no) upfront costs, so you will have more working capital for other business needs.
- no ongoing borrowing costs to buy the property.
- the flexibility to move premises more easily over time as your business needs change.
- your landlord may be responsible for some of the ongoing property costs (such as rates, repairs and maintenance), depending on the terms and conditions of your lease.
Leasing a Mount Isa commercial property can be a better option than buying if the advantages of doing it outweigh the advantages of buying.
Types of Mount Isa commercial properties
Mount Isa has a range of commercial property options to suit different business needs, including:
- office space
- retail space
- warehouse space
- industrial/workshop space
- commercially zoned land
- accommodation complexes.
Many Mount Isa commercial properties also have a diverse range of potential uses.
Mount Isa’s commercial property sales market
Mount Isa has a strong commercial property sector for mining and a range of services (including transport, mechanical repairs, retail stores, wholesalers, hotels, restaurants/cafes, health and education).
According to the Mount Isa City Council’s latest investment prospectus, forecast growth industries for the future include:
- minerals processing
- transport and logistics
- irrigated agriculture
- non-conventional petroleum and gas exploration
- precious metal and rare earth exploration
Strong commercial property demand from buyers should be expected in all of these industries for the foreseeable future.
Commercial property buyers can come from anywhere due to the global nature of Mount Isa’s most dominant industries. Selling prices vary considerably depending on the type of commercial property, its size and location.
Mount Isa’s commercial leasing market
The strongest demand for commercial property in Mount Isa tends to be from businesses looking for:
- industrial/warehouse space
- retail space
- office space
- accommodation complexes
- commercially zoned land.
Rent charges vary considerably depending on the type of commercial property asset, its size and location.
The long-term nature of the mining industry and other forecast growth industries in Mount Isa such as agriculture, transport and logistics tends to encourage long-term leases.
The bottom line
At the end of the day, there are good reasons for both buying and leasing Mt Isa commercial property. The right decision depends on your business needs.
If you’re thinking about leasing, renting, selling or buying any Mt Isa property, or you need your property managed, then contact our team today for an obligation-free chat!
We’d be happy to provide you with advice and to answer any questions you have.