I'm currently putting in $100/mth into STI ETF and $1000 into SSB. I am looking at next is investing in REITS through a brokerage. Should I buy a lot or 1000 shares if I have around 1k-5k to invest? - Seedly
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Shawn Lim

Asked on 04 Feb 2019

I'm currently putting in $100/mth into STI ETF and $1000 into SSB. I am looking at next is investing in REITS through a brokerage. Should I buy a lot or 1000 shares if I have around 1k-5k to invest?

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Chua Wei Feng
Chua Wei Feng
Level 4. Prodigy
Answered on 11 Nov 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.

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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.

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Sharmila William
Sharmila William

19 Aug 2019

I’ve linked cdp account to vickers. Do I go to cdp net to buy REITs?
Sharon
Sharon

21 Jan 2020

Just buy the REITS on DBS Vickers. Do ensure you already have a CDP account. CDP acts like a safe for your stocks.
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J
James
Level 2. Rookie
Answered on 17 Jul 2020

I feel that it depends on your risk appetite. Make sure you have enough buffer savings.

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MT2020
MT2020
Level 7. Grand Master
Answered on 26 Feb 2020

Every reits have different price. You should do your research before buying into any reits.

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Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Aug)

Level 9. God of Wisdom
Updated on 21 Feb 2020

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:

https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy​​​

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Wilson Nid A Break
Wilson Nid A Break
Level 9. God of Wisdom
Answered on 04 Dec 2019

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

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Brian
Brian
Level 4. Prodigy
Answered on 15 Nov 2019

Hi Shawn,

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:

  • NAV value

  • Dividend Yield

  • Leverage (Gearing ratios)

  • Composition of REIT sectors covered and Industries covered

  • DIvidend payout frequency

https://solutions.kristal.ai/seedlypost

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Frankie Rappaport
Frankie Rappaport

21 Feb 2020

Lion-Phillip lot size is 100
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