Should young Kiwis buy their first business instead of a house?

Author
Newstalk ZB,
Publish Date
Wed, 2 Dec 2020, 7:43PM
(Photo / Getty)
(Photo / Getty)

Should young Kiwis buy their first business instead of a house?

Author
Newstalk ZB,
Publish Date
Wed, 2 Dec 2020, 7:43PM

Should young Kiwis be saving for their first business instead of their first house?

Sale prices for small and medium businesses are usually closely guarded, but ABC Business Sales has decided to break with tradition and release data about the average business sales price.

And it turns out, the average business sold for $653,000 in New Zealand last year, much less than the average house price of $725,000.

Managing director at ABC Business Sales Chris Small told Heather du Plessis-Allan that businesses are better assets for economy, as they contribute to job creation and GDP.

He says that people could see a 33 percent pre-tax return from a business, versus about three or four percent. 

Small says no one was looking to buy a business earlier this year, but the confidence in the economy is seeing people snap up a business. 

"October and November were our strongest months in three years."

Older people and those reaching the end of their business potential are amongst those selling, he says. 

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