How do I begin investing on REITS? - Seedly
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Anonymous

Asked on 20 Aug 2018

How do I begin investing on REITS?

Totally new to real estate

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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.​​​

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Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 9. God of Wisdom
Answered on 15 Sep 2018

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

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Kenny Leow
Kenny Leow
Level 3. Wonderkid
Answered 6d ago
  1. Be willing to keep yourself updated with the ever-changing REIT market.

  2. Start small, invest in small amount and see how it pans out for you

  3. Diversify!

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Jason Sin
Jason Sin
Level 8. Wizard
Answered on 16 Sep 2018

Open a brokerage account and a CDP account. Do your homework before investing in REITS.

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Jay Liu
Jay Liu, Diploma in Accountancy at KHEA
Level 7. Grand Master
Answered on 16 Sep 2018

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.

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Jeff Yeo
Jeff Yeo, amateur Social contributor at School of social sharing
Level 7. Grand Master
Answered on 16 Sep 2018
  • 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

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Yong Kah Hwee
Yong Kah Hwee
Level 8. Wizard
Answered on 15 Sep 2018

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.

Good luck!

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Gabriel Tham
Gabriel Tham, Tag Team Member at Kenichi Tag Team
Level 9. God of Wisdom
Answered on 15 Sep 2018

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. ​​​

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