facebookIf I wish to invest in commercial or industrial, would REITs be an equivalent instead of owning the property directly? Are REITs a better choice compared to property investment? - Seedly

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Anonymous

26 Feb 2020

Property

If I wish to invest in commercial or industrial, would REITs be an equivalent instead of owning the property directly? Are REITs a better choice compared to property investment?

Discussion (5)

What are your thoughts?

Cedric Jamie Soh

Cedric Jamie Soh

03 Jun 2019

Level 12·Director at Seniorcare.com.sg

1) Yes to your first question

2) Yes to your 2nd question

REITS'

a) dividends are non taxable

b) do not need you to manage the property

c) do not need you to stressed if 1 or 2 units are not rented out

d) a better management of leverage and loan ratio.

I did a simulation by comparing owning a physical industrial property vs buying REITS, the result show that if u can get above 6% yield from REITS, then it's better than owning physical pty. Plus there r many risk associate with physical pty like vacancy rate, gov ruling, ageing property, rental default. All these will eat into yr return.

Reits is a better choice if you do not have enough capital to buy a second property. Investing in re...

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