Renting A Factory Vs. Buying A Factory In Thailand – Pros And Cons

There has long been much debate as to whether renting or buying a factory is the best option. Ultimately, it all depends on your unique circumstances, the nature of your business, and where the factory in question is located.

Certainly, there are many advantages to renting a factory (which we will cover shortly), but buying a factory and owning it outright has its benefits as well. In this article, we’re going to take a closer look to decide which might be the best approach for you and your business.

Renting a factory in Thailand

So, what are the benefits of renting a factory in Thailand?

• Save on your initial investment: particularly if yours is a young business, renting a factory will be the more affordable option in the early stages as you won’t have to delegate a large amount of your budget to acquiring the property.
• The potential to move to bigger premises if needed: how certain are you that the factory in question will be able to continue meeting your requirements? When you rent, moving to a larger facility will be much easier.
• Don’t worry about maintenance: when you rent a factory, the property owner will be responsible for its maintenance and general upkeep, which can be a weight off your mind.
• More choice and variety: there tends to be more choice when looking to rent a factory as opposed to buying.

Buying a factory in Thailand

How does buying a factory in Thailand, compare?

• Own solid real estate in a strategic location: if you get lucky and you find a factory for sale in a strategic location, owning it outright has its advantages – particularly if land value is set to appreciate in that area. Should you decide to sell up and more on in the future, you could have a highly desirable piece of real estate under your belt.
• Have full control over the property: when you own a factory outright, you will have full control over the property. This means that should you wish to expand and make changes to the building, you will not have to get permission from your landlord prior to doing so.
• An asset rich business: business’s that invest in and own more real estate have more flexibility. Even if you need to move onto a bigger factory in the future, if you are in the position to do so, you can rent out your factory and continue earning from it.

Conclusion

As you can see, there is a solid argument for both renting and buying a factory. Ultimately, the decision is yours. In any case, you should seek legal advice and speak with a real estate agency that deals in industrial property in Thailand, and gather all of the information you can before making a final decision.