Online agent Purplebricks is potentially one of the biggest ‘investment traps’ in increasingly tough times for the global economy, so says a contributor to an influential investment blog.
Royston Wild, a financial reporter specialising in the stocks, forex and commodity markets writing for The Motley Fool, says that although generous lending conditions are supporting first time buyers, toughening economic conditions alongside Brexit are harming the wider housing market. He suggests that, although the company has long term potential, the cost of international expansion is also impacting its prospects.
The blogger offers his opinion on Purplebricks’ shares in a post in which he endorses investing in Irish house builder, Cairn Homes, as a better option.
Wild says: “Purplebricks offers plenty of long-term potential, sure. But at the moment, its trading troubles at home and arguably overambitious expansion plans make it far too risky. I’d much rather stick with Cairn and its gigantic dividend yields.”
Needless to say, not everyone will agree with this particular blogger’s opinions. But his comments certainly help to remind us that, in an industry increasingly preoccupied with online, there is a much, much wider property world out there.
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