One of the big questions that church pastors and elders have to answer is whether the church should lease or buy a physical property. It can be a tough decision! On one hand, leasing may seem the easiest and most cost-efficient option. After all, there’s no need to get involved in complicated real estate transactions or construction projects. On the other hand, buying could give you more control over your finances and provide traditional benefits such as building equity while giving your congregation an attractive home from which they can worship. To help you make this critical decision, Hearn Construction, Inc. looks at some of the key considerations around leasing vs buying/building for churches when providing your congregation with a place of worship.
The Pros and Cons of Leasing vs. Buying for Churches
When establishing a new church, quite a few decisions must be made. Perhaps one of the biggest is whether to lease or buy/build out the worship space. There are pros and cons to each option. Leasing can provide flexibility and lower initial costs, but rent increases are also possible. Buying or constructing a new space can give you complete control over the environment and be an asset for your organization. Still, it can also come with higher upfront costs and maintenance responsibilities. Ultimately, the decision comes down to what works best for your church and its needs.
Calculate the Financial Implications
When making financial decisions, it’s essential to review all of your options thoroughly. But how do you calculate the financial implications of each option? One approach is to create a cash flow projection for each potential decision, accounting for all the expenses and revenue. This will allow you to compare the financial outcomes of each option and make an informed decision. It’s also necessary to consider any potential risks or unforeseen expenses. By taking a systematic approach and due diligence, you can be confident in your financial decision-making and set yourself up for success.
Examine Long Term Goals
When it comes to examining long-term goals for your church, there are a few things you’ll want to consider. First, look at your church’s mission statement – what is the ultimate goal you want to achieve? Next, think about your specific goals for your church over the next few years. Does a design and build make sense? Or perhaps a church remodel? Considering any potential roadblocks or challenges with each option is essential. Finally, don’t be afraid to reach out to other churches or leaders in your community for advice and guidance.
More to Come
There’s more to consider when it comes to leasing vs. buying/building for churches, so come back next month for part two of this series. In the meantime, don’t hesitate to contact the professionals at Hearn Construction with any Indianapolis construction questions or needs by calling (765) 452-2669.