Why you should buy a business in Perth in 2020
Perth is home to great cafes, restaurants, beautiful beaches and more. If you are looking to buy a business in Perth this year, it’s worth speaking to a local business broker to gain an understanding of current market trends.
We spoke to Greg Hunter who is the owner of GHunter and Associates which was established in 2001. Greg was also chairman of the business broking chapter for the REIWA for the past 4 years, until recently.
How would you describe the market in Perth at the moment?
Still patchy, but showing signs of recovery and improvement. We have just come off the best quarter we have had in the past 4 years. The market is slowly picking up. We hope it continues to improve.
What are the most popular business purchases lately?
Anything that isn't retail! Retail is doing it tough. Services are doing well and we are also receiving good enquiries on engineering types of businesses.
What trends do you see happening in Perth for the rest of the year?
People are starting to accept that this is the new market. People will stop holding out for recovery and accept that this is the new climate we are working in. Baby boomers wanting to retire will begin to accept that they will not be getting the same money for their businesses as they would have received 5 years ago.
Are buyers getting finance to purchase?
Interest rates are low, but finance from traditional banks is difficult to attain. You will start to see people getting finance from 2nd and 3rd tier lenders. Also vendor finance may need to be considered as part of the deal going forward.
What do you think sets Perth apart from other Capital Cities?
*Isolation and lower population, people in WA have to be pretty innovative to solve issues, which they are.
*They are in the same time zone as China, which is a plus for WA.
*All three markets, commercial, housing and business are all in decline at the moment, which is usually unheard of. All 3 of these markets are connected as people lose value on their homes, therefore less likely to spend which in turn affects businesses etc.
How to feel the Franchise sector is going?
Franchise businesses are currently struggling. There was a government enquiry into the franchise code of conduct last year and some changes are being made.
Do you have a favourite Cafe or Restaurant in Perth?
These would be my favourite cafe and restaurant to visit:
Cafe - Dome Cafe - Shop 5 Westralia Plaza, 167 St Georges Terrace, Perth WA 6000
Restaurant - Andaluz Tapas Wine Bar - 21 Howard St, Perth WA 6000
Greg has years of experience in assisting owners to buy and sell businesses. To get in-touch, please see his website.
So if you’re looking at Perth as your next place to buy a business, there are some great opportunities and reasons to invest.
To see the latest businesses for sale in Perth WA