How do I start investing in REITs? What is the minimum amount to start investing? - Seedly
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Anonymous

Asked on 01 Apr 2019

How do I start investing in REITs? What is the minimum amount to start investing?

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It is listed on the stock market like every stocks so just open a trading account with a local broker with the lowest commission but do remember to do your own research on what to invest first. Minimum is 1 lot=100 shares. So if a stock/reit is valued at $1, minimum is $100. But you also have to take into consideration minimum commission. So usually its better to invest at least $1,000 if the minimum commission is $10. Optimally taking Standard Chartered as an example, it will be better if you invest in $5,000 as that will fully utilize the commission.

https://blog.seedly.sg/the-ultimate-cheatsheet-cheapest-stock-brokerage-in-singapore/

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Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 9. God of Wisdom
Answered on 02 Apr 2019

There are a couple of ways to start. First method is more traditional where you open cdp and brokerage accounts and you buy your chosen reit off the market.

Second method is to do dollar cost averaging into a chosen reit every month. Maybank ke's monthly investment plan will allow you to buy into certain reits like those offered by capitaland or mapletree for $100 per counter per month. You don't need a cdp account for this as the shares are held in custodian by the broker. Hope this helps.

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Zann Chua
Zann Chua
Level 6. Master
Answered on 02 Apr 2019

Hello!

All you have to do is to open an individual CDP account as well as set up a trading account with a brokerage firm of your choice. Some brokers may be able to do both at the same time. Do look out for high commission rates charged by brokers, which would eat into your profits. the article that nicholes attached would be able to help you to make a better choice of which broker to use!

If i am not wrong, the minimum amount to start with would be a few hundred dollars. It would likely depend on the stock broker that you use. Investing in REITs is similar to investing in the stock market.

hope this helps!

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