Singapore Saving Bonds (SSB)
Asked on 04 Feb 2019
With brokerage charges, you will incur a high sales charge relative to your investment amount. Would be wiser to use an RSP by Poems to invest in the REIT counters you are interested in for lower sales charge.
1 lot is 100 shares usually in Singapore context. 1 lot or 10 lot is up to you and have to see the share price of the REITs that you are interested in as well. Just make sure you done your research before buying and comfortable with stock volatility.
Every reits have different price. You should do your research before buying into any reits.
Instead of single REITs invest into REIT-ETF (passive indexing) for diversification, use the total sum at once, invest for at least 10 years without selling
more on my thinking:
You should buy based on your risk profiling of each individual stock, not how much money you can splurge on. This is investing not retail therapy
To start investing in REITs, you must set up 2 accounts, 1 with the CDP and 1 brokerage account. Typically, brokers are able to offer such account opening services but you should keep in mind the extensive broker costs when opening an account!
In terms of the mechanics behind investing in REITs, 1 lot typically refers to 1000 shares and is transacted just like a normal shares transaction. Often, the prices are listed in dollar value (i.e. SGD1.1670 Lion-Philip S-REIT ETF hence 1 lot would be SGD1167.0 before all management/transaction fees). Therefore with your avaiable cash that you have set out to invest, you would be able to afford about 3-4 lots depending on the prices.
Just to add on, it is crucial to conduct your typical investment analysis in selecting REITs. Some factors include:
Leverage (Gearing ratios)
Composition of REIT sectors covered and Industries covered
DIvidend payout frequency