Purplebricks’ Share Price An ‘Investment Trap’ Says Reporter

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.

What is DealMakerz Prime?

In depth stories

Want to know the story behind Britain's latest property mogul? Why a company is going bust? Our coverage goes beyond run-of-the-mill news on key real estate issues.

High powered community

Our subscribers are made up of the most influential Founders and CEO's in UK property. Gain a competitive edge and get informed - read what they read.

Exclusive guest articles

Understand exactly what the most senior figures in UK property are thinking. Exclusive opinion articles from powerful real estate influencers that move markets.

Source The Motley Fool
You might also like