Buying gastro real estate in times of crisis
There are currently favorable purchase opportunities in the real estate sector for investors. Due to CoVid-19, numerous innkeepers have to sell their properties. More hotels, restaurants, guest houses, inns and other gastro properties are coming onto the market every day. Gastronomy properties are a safe haven for institutional investors as well as private investors. They generate solid long-term returns and achieve high increases in value - provided the preconditions are right. In our gastronomy blog you can find out what to consider when selecting gastronomy properties for sale due to a crisis and in the purchase process.
The pandemic has plunged the entire hospitality industry into crisis. For many restaurants, hotels and other catering establishments, Corona means the end. Many owners even have to sell the gastro property.
Crisis for gastronomy - opportunity for investors
What means a lot of damage for operators and owners of gastronomy real estate is an opportunity for investors who have always waited to buy a good gastronomy property at a particularly low price. This applies to institutional investors and funds as well as to private investors. Those who ask the crucial questions, analyze them in detail and enter the negotiation skillfully can make a real bargain. We have listed the points that are important when buying a catering property.
Buying at the right time means buying in times of crisis
Success in investing depends on timing. If real estate investors buy at the right time during the crisis, they benefit in three ways: 1. They buy the catering property at a price that is below its actual value. 2. Get a safe asset that will generate solid long-term returns. 3. Have the chance to benefit from a high increase in value. Provided that the building structure, location, catchment area, legal usage options and general further development are correct.
Analysis and selection: cheap is not always good
At the latest when the economy has recovered, freshly baked gastronomy property owners will see whether their investment has paid off. However, the data before the crisis or the purchase also suggest the potential of the property under normal operation.
Tip: So don't just pay attention to the price! Use exactly the same criteria as you would under normal circumstances when making your selection. Make a potential analysis under the following aspects: location, use, concept, etc. Let an experienced catering real estate agent advise you. This is the only way to be sure that you are not making a bad investment.
Location, region, catchment area and other factors
In addition to the general success factors such as location, region, catchment area, building structure, right of use and, if necessary, changes, factors that are directly related to the crisis are also important for the long-term orientation of the catering property.
Tip: Analyze the reasons that caused the catering business for sale to stumble. Was it the management, the concept, the equipment? Or does the property itself have disadvantages that could threaten the existence of the next crisis again? If necessary, allow for additional investments that would make the catering property more crisis-resistant.
Sustainable concept and alternative right of use
Investors should ask themselves whether, in the event of a similar crisis, an alternative management concept could be used that would generate enough revenue even under adverse circumstances and secure your rental income.
Tip: Check: Is it possible to change the use? Have this checked - if you haven't already done so. So you are armed and can switch if necessary if a new circumstance calls for a fundamental change.
Be quick! The pace of investing is just as important as timing. There are many good opportunities. Real bargains are not. If you discover one, you have to hurry.
Tip: don't waste time! Check the offer, make an appointment to view the gastronomy property immediately and have all the relevant documents ready. Be sure to consult a (crisis) experienced catering broker for the purchase of the property so that you do not make mistakes in the necessary hurry, which you may pay dearly.
Win-win situation in the crisis
If an investor buys a property from a crisis-ridden restaurateur at a good price, a win-win situation automatically arises. The investor helps the seller out of the quandary, he can get a good deal himself. As a rule, negotiations run a little faster in crises because pricing is quicker. Experienced catering brokers know where the pain threshold is and can help you save a lot of money.