An antidote to inflation

An antidote to inflation

An antidote to indexation of your business rent! buy your offices 😊

In Belgium, inflation will reach 12% in October and around 7% over the last 12 months.

Here is a comparison between the cost of renting and acquiring a professional space.

Rental

Your rent will be indexed between 10 and 12% in 2022! To measure the impact, here is a concrete example:

For example, your company has rented a 300 m2 office space on 1 September 2021. Your base rent was €100/m2/year, i.e. €30,000/year.

If inflation continues to be around 10% by October 2023, your rent will be €36,565 in October 2023.

Test it yourself, here's how to index your rent in a few clicks: https://statbel.fgov.be/fr/themes/prix-la-consommation/indexation-du-loyer#panel-11

Purchase

If you take the same example, and buy this 300 m2 area today at a price of €1,500/m2, i.e. €450,000, this is what it will cost you.

Fixed rate of 2.5%, term of 15 years, here is what your annual payment would be: €35,935/year

In 15 years, you will own a property whose debts have been fully repaid (with the possibility of resale or pledge for another loan).

So yes, comparison is not reason, an acquisition requires 25 to 30% equity, which companies do not have at the moment.

Here is the link to calculate your own credit: https://www.wikifin.be/fr/calculateur-de-credit?credit=monthPay

And if you are looking for an honest and efficient banker for your company, I recommend Alain Felis, AXA Banque: https://www.axabank.be/fr/agences/felis-financial-services

Our advice, buy if you can or renegotiate the financial terms of your lease with our help. Read our 4 tips for renegotiating your rent: https://www.b2bestate.be/occupants/renegociation-de-contrat-de-bail-4-conseils-de-negociation-de-bail

Olivier Vigneron

Crédit image : https://fr.freepik.com