BusinessHABOwn Freehold Office: A freehold office can be helpful to home-based business owners.
Telecommuters and anyone who wants to create a space for paying bills.
Working on projects or studying.
Whether you create a home office in a studio apartment.
Or build a custom addition onto your home.
You can make a space that will help optimize your productivity.
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What is freehold?
In Nigeria, properties can be either leasehold or freehold.
Leasehold means you have the right to live on the land for so many years.
But you don’t actually own it.
Freehold means you own the land itself – which has its perks.
But also comes with extra responsibilities.
When you buy a freehold property, it means you’re totally in charge of the building.
What happens to it and how it’s used (unlike leaseholders.
Who need permission from the freeholder to do certain things).
It’s also up to you to sort out any repairs or maintenance (though leaseholders have to pay towards that too).
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The upsides
Freeholds are usually houses.
The good bit is that you’re the boss.
And you don’t have to pay any ground rents, service charges or admin fees.
You don’t need permission to do things like smoke, have pets.
Or have building work done (aside from planning permission, obviously).
Unless there are other freeholders who also have a say.
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The downsides
Freeholds are often more expensive than leaseholds.
Because you own the land as well as the property.
And again, being a freeholder comes with extra responsibilities.
If there are other freeholders.
Agreeing on major decisions can be stressful and time-consuming.
And If you like the idea of living somewhere with shared areas or services.
Like an apartment complex with a gym or a concierge, freehold probably isn’t for you.
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Own Freehold Office:
1. Determine what space you have available for a home office.
- Your office should have its own space as separate as possible from other household activities.
- Ideally, this will include a door that closes out noise and other distractions. Perhaps you have an extra bedroom or a section of a finished basement.
- A folding screen or bookcase can help create a dedicated work area if you are unable to dedicate an entire room to your home office. Even a small corner with a desk can create an atmosphere.
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Own Freehold Office:
2. Define the needs you have for your office space.
- You will need a desk or other surface for your computer, a chair and space for files or reference materials.
- Office machines such as a scanner and printer will also be necessities in most homes offices.
- You may want a separate waiting area if you have a business requiring client confidentiality, such as a law practice or a therapy practice.
- Decide whether you will need meeting space or space for an assistant or other employees.
Own Freehold Office:
3. Make a budget for your home office.
- You may need to prioritize purchases over time, adding equipment and furniture as finances allow.
- Evaluate whether equipment such as computers and other office machines are a better deal for you if purchased or leased. In either case, be sure you have access to reliable service for all of the equipment.
- You may be able to find furniture for your office from a refurbished office furniture company or purchase used office furniture at a garage sale or from an office that is closing, relocating or remodeling.
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Own Freehold Office:
4. Decorate your office to make it as inviting as possible.
- The more pleasant and attractive your office space, the more you will enjoy the time you spend there, which has been shown to translate to increased productivity.
- Consider using full-spectrum lighting to get many of the advantages of sunlight if your office does not have natural light from a window.
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Own Freehold Office:
5. Create a separate storage or archival area, if needed.
- Set aside another area in your attic, basement or a closet or space in another area of the house if space does not permit you to keep all of your files or supplies in your home office.
- Minimize the amount of space needed for paper storage by scanning documents and records to your computer. Back up these records on a regular basis.
Own Freehold Office:
6. Set ground rules with your family and for yourself about use of the space, noise and interruptions.
- Your children should have their own areas dedicated to homework and should be taught to respect your work space.
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Own Freehold Office:
7. Determine whether your home office qualifies as a tax deduction.
- Internal Revenue Service (IRS) regulations allow for tax deductions on that portion of a house used exclusively for business, under certain conditions and restrictions. You can find an overview of the regulations on the IRS website.
- You must use a specific portion of the house “regularly and exclusively” to conduct business to claim a home office deduction.
- Use IRS Form 8829, Expenses for Business Use of Your Home (available at http://www.irs.gov/pub/irs-pdf/f8829.pdf), to calculate your allowable deduction if you are self-employed and transfer this to your Schedule C form.
- You may also be able to deduct a home office if you can demonstrate that you are working at home for the convenience or benefit of your employer, rather than for your own benefit.
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Own Freehold Office:
9. Flying freehold and creeping freehold
Flying and creeping freeholds apply to parts of the property that are owned by one person, but overlap with another. For example, a balcony that juts out over another property (flying), or a cellar that sits underneath it (creeping). Needless to say, this kind of setup can create problems. Even if there’s a clear freeholder, whatever they do to that part of the property will affect others.
Own Freehold Office:
10. Things to think about
Buying a freehold property often seems easier, as you know exactly what you’re getting. You know you won’t have to worry about renewing your lease. And you don’t need to get permission to do things like smoke, have pets or do renovations (apart from planning permission, obviously).
If you’re buying a share of the freehold, ask what repairs have been done recently, what the relationship is like with the other freeholders (if there are any). And how they go about making decisions about the property.
Whether you’re buying leasehold or freehold, make sure you look into the property thoroughly and know about any fees that might come with it. Get an experienced chartered surveyor to check the property for issues that could crop up with the building or surrounding land.
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Conclusion:
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