How much would you/should you invest in a garden office that is built by craftsmen, designed for comfort and efficiency and specified to provide a life time of warmth, peace and quiet, security? Here we explore garden office costs, rather than paying rental to another business.
Garden office cost compared with renting an office
Rented office cost:
At the time of writing in January 2013 I found the following examples of rented offices:
16ft x 10ft office available to let in Hounslow at £142 per week = £7384 per annum
And a similar sized office in Birmingham was available at £131 per week = £6828 per annum.
These are modest and realistic examples. I also found a lot of serviced offices and rented desks in central London which are much more expensive than the above.
Garden office costs:
Garden offices vary in price depending upon the quality of construction and level of specification. you can pay £5000 for a very small and basic office. You can pay £20,000 for an office the peg office or £50,000 for an individually built, architect-designed high specification building.
If your business is vat registered you can claim the vat back and your office with cost 20% less the following figures.
Mortgage needed to buy a garden office
Using the BBC mortgage calculator I worked out that:
A loan of £35000 over 10 years:
– with an interest rate of 5% over 10 years the repayments would be £94.35 per week = £377.42 a month
– with an interest rate of 2.5% over 10 years the repayments would be £83.82 per week = £335.25 a month
– if interest rates rose to 10% over 10 years the repayments would be £118.66 per week = £474.67 a month and is still less than renting an office in Birmingham or Hounslow.
A loan of £35000 over 5 years:
– with an interest rate of 5% over 5 years repayments would be £168.42 = £673.67 per month
This is £104 a month more than renting an office in Hounslow, but you own the building that will be office, teenagers den or granny’s retreat, depending upon your life stage.
What else could you buy for £35000?
- A new Audi A6 saloon
- A five year old, six-berth Fiat motorhome
Both of these are valuable purchases that can be compared with investing in a permanent garden office. TA good quality office will last up to 50 years, add value and space to your home and be cheaper to run and maintain!