Join this session
11am, Wednesday 28th April 2021
This is for Agency Hackers members. If your agency isn’t a member yet, please sign up here.
OWN IT: Could Buying Your Office Space Be an Important Asset in Your Agency’s Finances?
- Renting out an office space can be a financial burden…
- …but have you ever thought about buying your office space outright?
- We’ll be talking to Gareth Morgan, CEO of Liberty Marketing, about the profitable benefits of owning commercial property, and how it can add value to your agency
People say that McDonald’s isn’t in the hamburger business – it’s in the REAL ESTATE business. Could the same be true for you and your agency?
“I’ve helped a couple of other agency owners with buying their own office buildings,” says Gareth. “I’ve been involved in property for 20 years and the two offices Liberty has been in, I bought rather than rented. It gave me far greater control and now I’ve got two assets that generate £1k per week profit for me personally, rather than paying off someone else’s mortgage.”
It all started when Gareth decided to buy his office outright.
“Back in 2009, I was paying Regus £2k per month for a room that fit eight people. We outgrew the space, and it was either pay them more for something larger or find a non-serviced change,” he explains. “Instead, I chose to buy a 2000sq foot office in Cardiff for £225k rather than rent – and it was a huge saving in the long-run. The building fit up to 20 people and the mortgage repayments were only £1200 per month.”
The agency outgrew this new space within four years, so Gareth eventually bought a larger building at auction for £460k.
“The repayment mortgage on this place is only £1600 per month, compared to the £7k it would cost to rent the same space,” he says.
It made sense for Gareth to never rent again after realising how much money he would save in the long-run and also the flexibility this gives him when making property-based decisions for the business.
In this session we’ll dig into:
- Tenants: This is a big way you can make things stack up financially. Either buy a building that already has tenants in part of it… or put tenants into parts of the building you don’t yet need.
- Finance: Working out the true value of a building comes with a lot of caveats – deposits, pensions, the strength of your accounts and VAT are just some of those hurdles.
- Acquisition: There are lots of tips and tricks you can follow to find good deals on property, working out what to offer and utilising commercial property agents.
The topic of commercial property is clearly a meaty one – join us in conversation with Gareth to discuss the positives and negatives on the journey to owning your own office space, and how to navigate all the potential problems on the path.