Are you looking to purchase commercial real estate? Larbig & Mortag has excellent contacts with institutional and private owners, giving us access to many potential sellers of investment properties valued at €1 million or more. We advise you regardless of whether you want to use the commercial property yourself or purchase it as a capital investment.
In addition to renting office space, low interest rates can present an opportunity to purchase office property for your own use. In this case, the regular rent payments would then go to your own company. Whether purchasing office property is preferable depends on various factors. The fundamental decision of whether to rent or buy should be made at an early stage, as this is crucial when searching for and selecting suitable office properties or locations.
Purchase requires high liquidity
In principle, a high level of liquidity should be available. In low-interest market phases, the necessary financial resources can be raised through loans. However, even here, a share of equity capital is necessary in order to obtain a positive commitment from a financing bank. However, if your credit rating is good enough, 100% financing is also possible, which is usually calculated by adding an interest premium. Buying a company-owned property ties up liquid financial resources and means long-term liabilities. This should be taken into account, as this portion of the company's assets is no longer available for other investments. For this reason, many entrepreneurs tend to opt for renting business premises in order to maintain their entrepreneurial flexibility. However, owning office property in Cologne, Bonn, or Leverkusen also represents an asset and therefore long-term security. The Cologne metropolitan area in particular offers a safe investment here.
Flexibility vs. static real estate
Young companies in particular should take business development into account to a high degree. Renting office space offers much greater flexibility than owning your own property. Growing companies should therefore prefer the flexible space situation offered by a rental agreement. Alternatively, if you own your own property, you should plan for a sufficiently large reserve. If your own property becomes too small too quickly, this can result in another time-consuming and expensive move, which can severely disrupt your workflow. Furthermore, it may not be possible to sell your own office property at short notice. If you are forced to sell your own property in such circumstances, this will usually have a negative impact on the sale proceeds.
Tax aspects
Tax aspects should also be taken into account when deciding to purchase your own office property. Once the decision to purchase a property has been made, the monthly costs (e.g., loan installments) cannot be claimed for tax purposes. However, the office space is classified as business assets for tax purposes (annual "depreciation" (AfA) possible). Therefore, purchasing office property can be advantageous from a tax perspective. In addition, it is possible to claim at least part of the purchase costs as income-related expenses for tax purposes.
Consider incidental purchase costs
When deciding on a purchase, the additional purchase costs, which vary from state to state, must be taken into account. The additional purchase costs for Cologne currently amount to up to 12 percent: real estate transfer tax 6.5 percent, notary fees 1.0 percent, land registry entry/court fees approximately 0.5 percent, brokerage fees 4.0 percent
Advantages of renting:
- no high initial investment; liquid funds can be used elsewhere
- high degree of flexibility for growing companies
- Rent payments are immediately tax deductible
Advantages of purchasing:
- Office property as an asset
- Planning security and constant costs
- Flexibility in office design
- Real estate purchases increase depreciation by three percent per year for the company
Our professional process offers you the following advantages:
- Property viewing
During a property inspection, we compile all relevant property data and facts for you, creating transparency for everyone involved. - Price determination
We determine the market-driven selling price for our real estate offers, taking into account the current real estate market situation. - Professional property preparation of your dream property
We create a detailed and comprehensive exposé for our customers, including professional photos. - Inclusion in our database of interested parties
We maintain a comprehensive database of registered property seekers at our company. They are regularly informed about interesting new properties – and of course you will be too. - Appointment management
We ensure efficient scheduling of appointments for viewings and thorough preparation for negotiations or appointments with notaries. - Communication
You will find our real estate listings regularly in regional and national print media, as well as on various internet portals and our own expert portal. - Financing options
We would be happy to advise you on financing options for your dream property in the greater Cologne, Bonn, and Leverkusen area. - Notary appointment
We will professionally prepare the notary appointment together with you and accompany you during this important step. - Comprehensive advice
We are here to answer all your questions about your commercial property – even after the sale
