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Buying a property vs. Leasing a property

The Ideal Hostel

Nathan Wilson started this discussion 7 years 3 months ago

I'm wanting to purchase a hostel, but I'm unsure whether buying a property or leasing a property is better. I would appreciate if other people could tell me their opinion and experiences. What did you choose, and do you have any regrets? Any advice?

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IrishMaria

7 years

Im currently looking into this. I guess it comes down to a number of factors:

1. Location ( if a foreigner can a foreigner legally own the building / land?)

2. Cost - is it more cost effective to lease on a long term lease as oppose to own ? Do you have the capital upfront? If in a different country foreigners must have the cash upfront to pay.

3. Cashflow - will buying cause you not to have cashflow in the vital first 6 months to a year?

Im sure there are other considerations but thats just what comes to mind at present

Maria

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Rucksack Brian

7 years

Here is a pretty good discussion from many years ago that might be helpful for you:

Do you own or lease your hostel location?

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RogueMonkYetiHunter

7 years

Thanks for the quick answers. One of the things I don't understand is if I decide to lease a hostel, and actually make it into a success, would I always be at the mercy of the owner of the property. When the lease comes up for renewal couldn't the owner increase the price significantly or say he no longer wants to lease the property to me. Has this ever happened to anyone else? Is there any way to avoid this?

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hostelfirst.lk

6 years

Hi Nathan,

We are a leading HOstel Chain looking for investors to invest in expanding our business based in Sri Lanka.

If you want to know or discuss more please e-mail Manju (CEO) [email protected]

Cheers

Manju

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