Is it time to move away from commercial property investments?

Property stocks have been struggling for a while and the corona virus has made matters worse. If you have property stocks in your investment portfolio, you have lost money. Should you hang in there or should you disinvest and put your money in other sectors? We are advising our customers to rather move their funds into other investment portfolios because we don’t see how property funds could recover any time soon because of the following;

· Commercial Property funds invest in shopping malls and office parks. With Covid -19, very few people are going to shopping malls hence the recovery is going to be very slow

· Social distancing and the risk of infection means that less people are willing to even go to restaurants, beauty salons, etc…

· If you have been to any shopping mall lately, you will notice that some of the smaller shops have closed down because no one is shopping

· The closure of Edgars means that most of the shopping malls are going to lose one of their anchor tenants

· More people are now buying clothes online and this trend is unlikely to be reversed

· Banks have been closing down branches as many customers now use digital banking, this is another big loss for most shopping centres and malls

· Many people are now working from home and this is likely to become the norm. Many companies are likely to downscale their offices as a result.

· Many companies are retrenching and therefore do not need big offices

· Job losses means that there are even fewer people that will have money to spend and this is likely to result in more shops closing down

So where should you be investing your money?

I have written about investments in companies such as the Oxford Science Innovation fund, Facebook, Amazon, Apple, Netflix, Google, Twitter and others and I believe that these companies will continue to offer investors good returns well into the future even as we enter the new normal after Covid-19. Visit our blog and type these names in the search to read full articles

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