Traditionally a slow time of year for property and business sales, January and February 2016 have bucked the trend slightly, with increasing and steady interest from buyers, although some were waiting to see what the Reserve Bank decided on interest rates at its February 2 meeting.
Is it a good time to sell or buy a business right now? Yes, it is. And here’s why.
The Reserve Bank has kept Australia’s interest rate on hold at 2%, with some economists tipping further cuts later in the year.
A low interest rate is clearly good news for business owners. Not only is it cheaper for them to borrow money, to buy or expand a business, but they will also be paying out less to service their loans.
Spend, spend, spend
Low interest rates reduce the incentive to save money, and that means consumers are more likely to spend on your products or services. Especially as their mortgage repayments will also have diminished.
And as it’s cheaper to borrow money, they are also more likely to take out loans to buy big ticket items.
Clearly when consumers spend money with you, the effect is ongoing, as you then spend more with other businesses.
RBA keep rates low
At the RBA’s February 2 meeting, Glenn Stevens, Governor: Monetary Policy Decision, said surveys showed that business conditions had moved to above-average levels, employment growth had picked up, the unemployment rate had declined in the second half of 2015, and the pace of lending to businesses had picked up.
If that’s not enough to convince you, consider this. With the current volatility in the stock exchange, investing in a business might be a more productive idea – especially as it comes with the added incentive of becoming your own boss and having more control over your financial future.
For many, it’s also the perfect excuse to make that tree-change or sea-change they have been promising themselves for years.
Most of us dream about escaping to the countryside, or a pretty seaside town, but we fear we won’t find enough work to sustain us. So, in effect, buying a business is buying yourself a job.
Many of the businesses advertised for sale through Coast to Coast Media are lifestyle businesses, something a couple could comfortably run between them, with casual help, or something ideal for pre-retirement. Very often, these businesses even come with accommodation included, providing a home and income all in one.
It’s easy to see why these types of businesses are so popular, as they really do tick all the boxes, and allow more people to live in their dream location.
The secret is the find the business that best suits your personality, your interests and your experience – although often, those selling the business are only too happy to provide some training.
If you’re a people person, a general store or post office would actually be a lot of fun, and a great way to meet your new neighbours.
If you have a catering or hospitality background, cafes, hotels, pubs and B&Bs are ideal.
Whether you are buying or selling in this favourable market, it’s probably time you had a chat with the experts at Coast to Coast Media. This independent, privately owned company has been helping clients buy and sell business for decades and fully understand what’s needed.
What’s more, they never charge commission, unlike brokers and agents, so the client always comes out on top.
Was your New Year resolution to finally become your own boss? Then it’s time to make it happen!