facebookInterested in buying REITs but don't know when is a good time to do so. Unlike for stocks when markets crash, you know it's a good time to buy. But under what conditions would it be good to buy REITs? - Seedly
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Anonymous

09 Sep 2020

Interested in buying REITs but don't know when is a good time to do so. Unlike for stocks when markets crash, you know it's a good time to buy. But under what conditions would it be good to buy REITs?

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    Discussion (5)

    What are your thoughts?

    Carol Fong

    Carol Fong

    09 Sep 2020

    Level 5ยทHead of Investor Relations at Manulife US REIT

    It is really subjective and depends on which sector and your holding period. Due to the nature of REITs, they (-8%) have been out-performing the STI (-22%) year to date. There is always a demand for REITs especially in a low interest rate environment, so as long as you are clear why you are holding a REIT, there will always be a good time for entry.

    As with all other investment products, REITs do come with investment risks, so it is important for you to find out more from your stockbroker or financial adviser and consider whether REIT investment is suitable for you. The Singapore Exchange (SGX), broking houses and educational portals such as Seedly regularly holds investment seminars on REITs investment for retail investors. These are all good avenues for you to learn how to value REITs.

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      The comments mentioned below are all really valid and I'd just like to throw in another pointer, a common valuation method for REITs is using price-to-book ratio. Just have an arsenal of tools to help you assess your decision and when you check off all the boxes (be it technical analysis, fundamentals, valuation), then it's go time.

      โ€‹

      I personally wouldn't worry about making the right decision at the right timing, just make sure it's the best sensible effort you put into making the decision at that point in time.

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        One year had passed, has the reit that you wanted to buy rebounded or still squashed?...

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