Asked by Anonymous
Asked on 20 Aug 2018
Totally new to real estate
How do I begin investing on REITS?
One must know REITS is Real Estate Investment Trust and it comprises of different sectors.
DO not confuse BUSINESS TRUST as REITS just because they have a common term which is "TRUST"
To Begin Investing in REITS, one must be willing to read the Annual Report and Understand they type of Property that are in the REITs.
To make it simple to understand, is the property making good money and are the money paid out to shareholders fairly or most revenue are taken by the REITS Manager.
How sustainable are the income generating assest and what problems they are facing.
With this in mind, you can start checking out the figures and make wiser decision.
Mm perhaps some basic understanding first. Reits pay out 90% or more of the income as distribution, typically once a quarter or every 6 months, and their borrowings cannot be more than 45%. Comprise of different sectors such as retail (shopping malls), industrial, health care (hospitals), data centres, commercial (office buildings). Depending on your preference on the sector, there's also sponsors to look at, such as capitaland, mapletree, Frasers, etc. Typical yields for reits go from 5+% to about 7+%, depending on the sector and counter chosen. Try to chasing those with high yields, as there's usually a reason to avoid them eg country and currency weakness (not all reits are based 100% based in Singapore). Do some research (lots of material out there, even on seedly blog) and decide on the counter to buy into. To embark on your reits journey, you will need to open a brokerage account and also cdp account. Think of the latter as a bank to store your shares. Once done, you can start buying reits. You can also consider using something like maybank ke's monthly investment plan to buy a minimum of $100 worth of shares of a reit. Wide selection available. All the best in your reit journey
If you're starting small, you can open an prefunded account with Maybank and do RSP of a REITS offered there. Pretty much REIT to choose from but do your homework.
Open brokage account
open a CDP account
buy on the Singapore stock exchange
look into things like a REIT ETF or buy into different companies
REITs are traded on the stock exchange just like stocks. They can be bought off brokerage firms such as DBS Vickers, etc.
Before investing in REITs or any other stocks, make sure you DYODD (do your own due dilligence). Learn some basic accounting, so you can read the financial statements and make sense of them. These resources can beeasily found online or in the library.
Top Contributor (Jan)
You need a brokerage account. Buy and sell REITs is same process as buy and sell any stock.
Check out what are the available REITs listed on the stock exchange.
You can attend some REITs courses or read some book on REITs investing for start.