facebookHi, i'm a newbbie. Why do people invest in S REITs for dividends (aka income) when the interest is very low? Why not just invest in global ETFs and just sell off the interest gained from it (income also?) as the interests are higher? - Seedly

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Anonymous

30 Jul 2020

General Investing

Hi, i'm a newbbie. Why do people invest in S REITs for dividends (aka income) when the interest is very low? Why not just invest in global ETFs and just sell off the interest gained from it (income also?) as the interests are higher?

Discussion (2)

What are your thoughts?

I'm also newbie. Correct me if I'm wrong but... for S-REITs you get dividends paid out quarterly (at least for the REITs I know of). And this is guranteed because of REITs have to pay out 90% of their rental income back to investor by law. But for global ETFs, the so-called interest, which I think you mean capital appreciation, can be a matter of years. Your captial can drop for the same period of 3 months, and you won't get your so-called income. But with REITs you will. But true also that with REITs you get a smaller capital appreciation.

Local bias. If you lives in Singapore, you can walk around vivocity or funan to see whether they are performing well!

Also, Reits is a form of property investment and deemed 'safer' for most people.

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