Redirecting an established domain to a new domain

I’m looking to buy a website, but the domain name is horrible, no keywords, no meaning, just numbers and characters. The owner said he bought it 4 years ago because it had a PR6, but now it is PR1. Although it does have many backlinks to it.

If I register my own domain and 301 redirect this current domain with all the backlinks, will I lose SEO and or referral traffic? And what is the best way to go about redirecting a domain so that my new domain keeps all the old backlinks redirecting to the new domain/directory?

Thanks a bunch!

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