Is time to consider buying REITs or Real Estate?

I think the long-term outlook for S-REITs will continue to be promising. And with Singapore now in Phase 3, the worst is over for many of the retail REITs affected by the pandemic.

Hospitality REITs may take a longer time to recover, but if you're talking about long-term prospects, I'm pretty bullish about the pent-up holiday demand that's gonna happen in the next 2 - 3 years.

And of course, with e-commerce now an integral part of everyday life, your industrial & data centre REITs are going to do well for the foreseeable future.

The total REITs weighting in STI is now about 14%. I personally think you can't go wrong by investing in the larger more reputable S-REITs like CapitaLand Integrated Commercial Trust or Keppel DC REIT.

Real Estate if you have the holding power, will highly likely be on uptrend. You and I both know Singapore is land scarce. Thus, if you have the monetary means, pay a little excess, buy a freehold property with good MCST (to make sure they have good track record of maintaining freehold properties), it can be handed down to the next generation also if the plan doesn't work out. It's always about hedging one's losses whilst trynna maximise one's gains. Try to find locations that are to-be developed. Developed locations will find it harder to churn out capital appreciation.

The main purpose of REITs is to provide passive income with 90% payout ratios and approx 30-40% gearing ratio and with interest rates at all-time lows, once interest rates were to rise, REITs would have to fork out higher interest payments (depending on debt schedule). This will lead to decrease in dividends if the REITs aren't able to achieve rental growth higher than the increase in interest payments. And with the decrease in dividends, analysts and investors forecasts would be adjusted which would therefore lead to a price correction to match the dividend expectation / yield.

Unless you have a huge capital, wouldn't do reits. Cause the dividends will not be a lot for small capital, plus got risk of captial depreciation.

It’s good for dividend they confirm pay 90% of their taxable earnings, but same with stocks you gotta check what they do and their financials.