PRIVATE LEASE WILL IT SUIT YOU
People acquire private property for their personal use, to ease them, to feel comfortable or to maintain their status. There are two common options available to you when you decide to acquire an asset, which are; private lease and buy. There are some advantages and disadvantages for both options, you should choose according to your convenience, and to make it easy for you we have set below some very easy questions for you, answering them will somehow enable you to decide about the best option to exercise.
First question is about the time period for which you are acquiring the asset, if you are acquiring the asset for a long term period say more than 5 years then leasing is not the right option for you. You will have to bear more interest cost as it will be distributed over 5 years. On the contrary, if you are planning to acquire a private property for a short term say up to 3 years then you must choose private leasing to acquire the property as it saves you from the major outflow of cash, which you may save or invest.
Another question is about nature of private property, whether it will go with used one or you require a new one. You have to analyze cost versus benefit if your requirement is fulfilled with used property then you must buy a used one as it will save money on the purchase price. And if it can only be fulfilled with new one you may opt for private leasing because usually new property’s cost will be much higher than the used one.
One more question is about the rapid change in your taste or technology of the property you are planning to acquire. If it is dynamic and you want to change it frequently we suggest you private lease, as then you will have the option of acquiring new one at the least price. But if you love the classic or desire to have some brand last long with you it will be suggested to purchase it so you will acquire more benefits out of it.
Another important question is about the tax, tax concealing is a crime but tax saving is wise, you may not have deep knowledge about the tax laws but generally lease rentals are allowable tax expense under international tax laws. On the other hand you have to bear the full tax on purchase of the private property as no deduction shall be allowed. Involving a lawyer friend might be a good idea who will guide you about the tax calculation however it is not a big issue.
Last but not a least one, what is the position of your cash and bank balances today? If you plan to purchase a private property you need a heavy cash outflow, on the contrary if you plan to private lease you need a trivial amount of cash to acquire the asset. You must plan acquiring of asset by considering above factor and analyzing your cash flows accordingly.
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