How do I start buying REITS?

U can look at reit etf

​

Just buy ETF

SG:CLR

purest SG REIT ETF

​

I highly recommend going the CDP route instead of using a custodian broker.

​

Yes, CDP-linked brokers charge way more per transaction as compared to custodian brokers. However, the benefits of using CDP-linked accounts are more of a psychological thing to me.

​

Firstly, the biggest benefit of CDP is that stocks you buy are owned under your name. I think we can all agree that it feels better to know that what you buy is truly under you and not tucked away in a warehouse.

​

Because the stocks are directy under your name, you recieve invitations to AGMs, get annual reports and voting rights. These allow us to become more aware of what we are investing in and if you are completely stumped by recieving your first letter asking for your vote, it will become an impetus for you to study more and to find out what the company is really doing and be more cognizant.

​

Secondly, it costs more to buy in, but it also costs more to sell shares in your CDP account out. Being able to move in and out freely of positions gives us the freedom to buy as many as we can dump. On one week I can be owning 1000 units of Ascendas and the next I can dump it for Frasers CPT. Restricting this freedom with a high selling fee gives me a big reason to think before I buy. Every buy is hence guaranteed to be more calculated and planned as compared to using a custodian account where we can waltz in and out of positions.

​

I treat the high transaction cost for buying shares into my CDP account as a fee I pay for the process to discipline me. This definitely depends a lot on perspective. For some, they are better with their self-discipline and do their due-diligence religiously before buying. But to each his own, and I hope this sharing helped you out.

Here's a simple illustration showing the process for a CDP-linked broker. For a custodian account, you simply merge CDP with the broker.