With interest rates rising, it’s a great time to buy a business!

29 Jan 24

Everywhere you look, it seems things are only getting more expensive. And that’s because inflation (the increase in prices of goods and services) is growing at its fastest pace in 20 years. To put the brakes on rising inflation, the Reserve Bank of Australia (RBA) has hiked interest rates 13 times since May 2022 to try and get it back between the two and three per cent target range. The strategy’s working but we’re not there yet so all eyes will be on the RBA next month when the board holds its first meeting for 2024.

But before you panic, there is some good news in all the doom and gloom: now might be the best time to buy an existing business in Australia – especially buying a franchise.

Overview

What are interest rates anyway?
Why are interest rate rises a bad thing?
How do I buy an existing business in Australia?

What are interest rates anyway?

Before we look at the opportunities to buy a business right now, it’s worth taking a look at what interest rates are and what the rises actually mean.

Essentially, the RBA adjusts interest rates to keep inflation (price growth) steady. Interest rates go up when the economy needs to slow down, and they go down when the RBA wants Australians to spend more money to boost economic growth.

This year, inflation has already reached 5.1% – which means things cost more than they used to. To ensure the cost of living doesn’t blow out of control, the RBA has raised interest rates.

Why are interest rate rises a bad thing?

What’s worrying most Australians right now isn’t just that it costs more to borrow and buy the things they need – it’s that incomes typically don’t go up with inflation.

So while you make the same at your day job, there’s less left in your pocket at the end of the day.

Now’s the time to buy a business

If you’ve been thinking about quitting your job to buy a business – or making extra income with a side hustle – now might be the best time to explore your options.

That extra income can help cover the rising cost of living, while also giving you more financial control and the chance to make more than you do at your day job. When you consider that the latest rate rise will mean an extra $133 a month on a mortgage worth $500,000 over 25 years and $265 a month on a mortgage worth $1 million, a little extra cash will surely be a blessing!

Right now, there’s a high demand for services – especially in rural and regional areas, as more Australians move to the country in search of a better work-life balance. As a result, there are plenty of franchises for sale across home cleaning, commercial cleaning (that is, office cleaning), lawns and gardens and more.

When you buy a business that follows the proven V.I.P. franchise system, you can also get up and running fast – because instead of having to find clients and set up your business by yourself, you have the backing and support of a strong and established brand with everything you need to succeed.

So even as interest rates and the cost of living continue to go up, you can be earning extra money to support you and your family.

How do I buy an existing business in Australia?

Ready to work the hours that work for you – and reach your financial goals even as interest rates rise? We can help you buy an existing business in Australia that works for you.

As a V.I.P. franchisee, you can enjoy an award-winning system with over 40 years of knowledge and solid support. So, you can enjoy extra income and spend more time doing the things you love.

Ask us about how to buy a business that supports your goals today.