Is the home office here to stay?
Are you as sick as I am of hearing “The new normal” or “In these unprecedented times”? The truth is COVID-19 and the resultant lockdowns ushered in a new era of work.
In our article, Your Property Plan Of Action During The Lockdown, we discussed how to position yourself as a property investor. But let’s consider how the future of work could affect your property investment strategy.
REMOTE WORK – THE PROS AND CONS
The advantages of remote work include no commuting, saving time and money, the flexibility of working from almost anywhere, and reduced operating costs for businesses.
Unfortunately, the disadvantages include isolation, blurred or non-existing boundaries, finding work-life balance, and struggling to switch off.
So, where does that leave us?
RETURNING TO THE OFFICE
More people have started going back to the office while some companies are forcing their staff to return. Overall, there are mixed feelings about returning full-time. Therefore, more companies are finding a happy middle ground with a blend between working remotely and going to the office for social interaction and collaboration.
PROPERTY INVESTMENT OPPORTUNITIES
In our article, 5 Reasons You Should Invest in Residential Property in South Africa Now, we discussed why NOW is the IDEAL time to invest in property. But here are some additional thoughts on the current property investment opportunities.
I can’t imagine that complete remote working will last, as businesses need a ‘home’ and a place for staff collaboration and inspiration. There will always be a demand for offices; it will just look different. However, I believe that companies’ offices will be smaller and move towards a co-working model.
So, are there opportunities in commercial property now? Absolutely! The decreased demand for commercial property has led to rising commercial to residential conversions, according to Property24.
Craig Mott, Cape Town Regional Sales and Commercial Manager for the Rawson Property Group, says this will result in “new mixed-use buildings with shared workplace, exercise and entertainment facilities”. Craig adds, “It’s an exciting trend that should inject new life into South Arica’s cities and provide excellent opportunities for buyers looking to ‘get it all’ under one roof.” You could even acquire office space at great prices!
This trend extends to residential properties as full title properties are becoming popular again since people need to work from home. Multiple generations living together, supporting one another has also pushed this trend.
It is vital to navigate these times with a clear strategy and actionable goals, as discussed in our article, Build a Significant Property Portfolio With Actionable Goals.
The bottom line? I love RESIDENTIAL PROPERTY because there will always be a demand for it, no matter what is going on in the world.
Read the entire article in the July Edition of Real Estate Investor Magazine.