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?
Gareth Morgan runs Liberty Marketing, a successful performance marketing agency. But he also spends a lot of his time thinking about commercial property.
“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 everything from tenants and finance, to acquisition.
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.