facebookAt what stage in my investing journey should I start looking and investing in REITs? Assuming i'm new to investing with little experience. Also, is there any market conditions that would make REITs more favourable in your opinion? - Seedly

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Anonymous

09 Mar 2020

SeedlyTV

At what stage in my investing journey should I start looking and investing in REITs? Assuming i'm new to investing with little experience. Also, is there any market conditions that would make REITs more favourable in your opinion?

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Discussion (7)

What are your thoughts?

Hariz Arthur Maloy

Hariz Arthur Maloy

15 May 2019

Level 15·Independent Financial Advisor at Promiseland Independent

REITs as an investment tool are great for aggressive and moderately aggressive portfolios, and you can hold probably 30% of your portfolio in them.

But when you're closer to retirement age, I wouldn't hold too many REITs. Probably only 10% of my portfolio.

I liken REITs to High Yield Bond funds. They hold similar benefits to investors and are exposed to similar risks especially interest rates.

Market conditions that REITs thrive in are low interest rate environments as they use quite a lot of gearing and are leveraged.

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It would be good to start as early as possible. this is to alow compounding to take place. A low interest rate would allow reits to thrive as they rely on gearing.

REITs can generally be a favorable component of total asset investment strategies, with regular welc...

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