What do you need to know about purchasing a retail space in New Zealand?

 

New electronic card data shows that retail spending has increased in June and with expectations for further growth, there has never been a better time to start a business. However, there are a number of actions that must be taken before you can open your doors.

Retail spending has increased by 1.2 per cent in June in comparison to May.

One of the most important actions is the purchase or leasing of property to house your new business. From engaging the bank to negotiating a settlement, the process can be complex and it’s best to have an experienced property lawyer on hand.

Rising transactions indicate growth

As the digital age continues to stride on, the rising use of electronic card transactions has become an excellent indicator of the business environment. Based on this, New Zealand is looking good.

Data from Statistics New Zealand shows that retail spending has increased by 1.2 per cent in June in comparison to May 2016. In fact, it is the first time since March last year that all six retail industries experienced increased consumer spending.

The largest increases included durables, which were up $17 million or 1.4 per cent and fuel, which rose a whopping 2.8 per cent or $16 million. Hospitality also showed strong growth for June, increasing 1.5 per cent, which translates to a $14 million increase in spending.

With the statistics showing that total spending had increased $295 million to $4.6 billion, there is space in a number of markets for additional businesses.

Buying or leasing commercial property in New Zealand

While there are a number of actions all potential retail business owners must take, none is more important than securing a premise for your business. Luckily, New Zealand has a wide range of commercial properties available, including large street facing retail space or property located within shopping centres and malls.

As with all the investments you make, you should ensure that what you can see is what you are getting. As part of your assessment, it’s important to obtain a Land Information Memorandum (LIM). This is a holistic report containing everything the local council is aware of in relation to the property.

It contains a number of important pieces of information including:

  • Land features that could impact your property, such as erosion, slippage and avulsion.
  • Zoning information and any council restrictions that prevent you from using the building in certain ways.
  • Unpaid rates.

While a LIM report is not so crucial when leasing a property, it is important to ensure that you have done due diligence of the property. Essential to this process is an experienced property lawyer.

Purchasing a new home can be a complex process.Purchasing a new home can be a complex process.

Why do you need a conveyancing lawyer?

Conveyancing is the legal work required to complete property transactions, such as buying and selling real estate. Property lawyers can undertake these transactions on your behalf.

While there is a dominant view that property lawyers are simply paper shufflers, this couldn’t be farther from the truth. In reality, the tasks that property lawyers execute are broad and often complex, which is why you need to have their advice.

One of the most important jobs that a property lawyer fulfills is to review your contract. In most purchasing agreements and leases, there are a number of conditions that can look benign but can have a major impact on you.

A property lawyer can ensure that you have all the information you need to make a correct decision. During negotiations, they can also ensure your interests are protected and keep you in the loop throughout the process.

If you would like to know more about the duties of a property lawyer, talk to an expert in the field. Contact Wynyard Wood today to discover how our services can help you.