SeedlyTV EP05 - Seedly

SeedlyTV EP05

Talk about REITs with Rusmin from The Fifth Person. LIVE on 23rd May 8 - 9pm. Don't miss out!

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We brought Rusmin from The Fifth Person down to share about REITs with us! Join us as we learn more about the world of REITs together. If you have any other questions regarding REITs, ask away! You can check out what was covered here!

  • Introduction of Rusmin from The Fifth Person-- 1:30-2:40
  • [Mini icebreaker] 2 Truths, 1 Lie-- 2:50-4:50
  • What are REITs?-- 5:00-6:55
  • Advantages of REITs (Start-up capital)-- 7:00-8:35
  • How can one start investing in REITs?-- 8:37-8:55
  • Advantages of REITs (Liquidity)-- 9:00-10:00
  • Advantages of REITs (Diversification)-- 10:05-12:55
  • Advantages of REITs (Tax exemption)-- 12:58-14:55
  • Advantages of REITs (Yield)-- 15:00-16:10
  • Advantages of REITs (Hassle-free)-- 16:15-18:20
  • Disadvantages of REITs (Leverage)-- 18:40-21:05
  • Disadvantages of REITs (Interest Rate)-- 21:10-22:15
  • Disadvantages of REITs (Volatility)-- 22:16-23:35
  • A list of REITs in Singapore-- 23:55-24:55
  • The different sectors of REITs in Singapore-- 25:30-29:35
  • Q&A with Rusmin from The Fifth Person-- 29:42-51:56
  • [Mini icebreaker] Reveal of 2 Truths, 1 Lie-- 52:00-57:55

    Speakers:
    - Rusmin Ang (Co-founder, The Fifth Person)
    - Kenneth Lou (Co-founder, Seedly -Moderator)

    NOTE: SeedlyTV is a series which will be covering topics via LIVE video and QnA on the Seedly platform. We will be inviting speakers to cover relevant topics in personal finance: Insurance, Debt, Saving, Spending and Investing. 

-This is a Seedly organised event-

Missed EP04? Watch it here: SeedlyTV EP04: Robo Wars - How You Can Start Investing Easily

Remember to ask your questions via the QnA section below!

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Investments

REITs

SeedlyTV EP05

James, $40K is probably best deployed after you look at your own objectives and decide what are you expecting from your investments. REITs are merely one of the many asset classes. As you have mentioned, you took years to save that $40K, so please ensure you manage the risk of your investment portfolio as well, and diversifying your asset classes is one of the ways. Your question is rather general, so it is hard to give a specific answer, but I hope you have some ideas now.

Investments

Stocks Discussion

STI ETF

ETF

REITs

SeedlyTV EP05

Takingstock @
Takingstock @
Level 4. Prodigy
Updated 4w ago
Short answer - index funds. After thinking about what Warren Buffet taught, a) index funds are low cost and dont erode returns through high fees. b) the index self corrects in the long run. c) the index will always go up in the long run. d) there's no skill or knowledge involved because you are buying the average. So you can't be really doing worse than below average. But what's the catch? 1) in the long run, we are all dead. So dont bother thinking 1-3 years is the long run if that's your timeframe... Its better to think of it in tens of years. 2) the index is effectively an average of the best blue chips in that market. It could be cream of the crop, but its still an average, which could really capture some underperformers, eg HPH trust on the STI. 3) the average and long run might not correspond to your own goals and targets. Eg the sti could still be underperforming in the short run when you want to withdraw it for retirement. Maybe not, but it could. Buying individual counters will take homework, but the reward is you could do better (or worse than average), and it should be more aligned to your risk preference, timing etc. The advantage of reits is really in stable dividend income (which is useful to some, eg in offsetting regular bills and expenses). You probably cant expect it to generate abnormal returns of appreciation. As an analogy, if you are into rpg, the index is like a pre-built team with a mix of tanks (blue chips), healers (reits) and mages / high dps (growth stocks). You dont really get to control the mix. And it might not have the support you need for certain missions. But it would highly likely do better than a team with only tanks, or only healers (who can't really kill the boss), or only high dps (but may not live long enough to deal that much damage). I think for starters, go with index in small manageable pace. Do your self learning in the meantime. Figure out after one to two years if this is what you want or could live with. If you think you can beat the market by then, you could start to customize according to your preference. I myself am an dividend / passive income investor. I focus on generating recurring cashflow that either pay the bills or allow me to save up and buy good blue chip counters when they are on discount. In the long run, I should end up with higher amounts of recurring dividends per year. I don't buy index because I believe I can build a portfolio that has a higher dividend yield compared to the index, I am keeping fees low, and the recurring cashflow helps to buffer through the bad times. I know this is the strategy I want, and I am willing to do the homework to ensure it continues, and try to beat the sti in terms of return.

SeedlyTV EP05

Investments

REITs

CGS-CIMB eWealth

Kenneth Lou
Kenneth Lou, Co-founder at Seedly
Level 8. Wizard
Answered on 25 Jul 2019
Hi there, your link seems broken but I would think that if you are interested in a basket of REITs ETFs there are other 3 other common ones to also consider as well. Here are the 3 REIT ETFs to consider: Lion Philip S-REIT ETF: http://www.lionglobalinvestors.com/en/funds/lion-phillip-s-reit-etf/index.html NikkoAM-Straits Trading Asia Ex Japan REIT ETF: https://www.nikkoam.com.sg/etf/asia-ex-japan-reit-sgd Phillip SGX APAC Dividend Leaders REIT ETF: https://www.poems.com.sg/pcm-etf/

REITs

Investments

SeedlyTV EP05

Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 6. Master
Answered on 02 Jun 2019
Mapletree commercial is rather expensive at the moment. Look to enter at a time when the spread between nav and current price is at its lowest.

Property

Investments

REITs

SeedlyTV EP05

Thaddeus Tan
Thaddeus Tan, Community Lead at Seedly
Level 6. Master
Answered on 31 May 2019
Here are some cons that investing in industrial properties bring: A.Time Investment If you own an industrial building with more than one tenant, it is likely that you will have more to responsibility than with a residential building. Basically, not everything can fall onto your tenant shoulders, it is your responsibility as well. B.Bigger initial investment Investing in a commercial property usually requires more capital up front than if you were to invest in a residential rental in the same area, this might be a sigificant blocker to most people C. More risks Industrial properties are believed to have more public visitors and therefore have more people on the property each day which increases the chances of someone getting hurt or do something to damage the property.

SeedlyTV EP05

Investments

REITs

Jansen Ng
Jansen Ng
Level 4. Prodigy
Answered on 23 May 2019
Kenneth: I made money from First reit Rusmin: Invest bitcoin

SeedlyTV EP05

Investments

REITs

Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 6. Master
Answered on 27 May 2019
Look at the trend of the spread (difference) between the NAV and current price. Buy when the spread is low

SeedlyTV EP05

Regular Shares Savings Plans (RSS)

REITs

Investments

Investing in REITs is similar to trading shares on the stock exchange. For trading and investing in best REITs, you must hold 2 accounts namely: SGX CDP account and Brokerage Account. If you are already investing in shares and trading on stock exchange then investing in REITs Singapore will be a cakewalk for you. For complete detail on how to invest in REITs, please check - https://www.mmfsolutions.sg/blog/singapore-reit-alternative-way-invest-singapore-real-estate/

SeedlyTV EP05

Investments

REITs

Regular Shares Savings Plans (RSS)

Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 6. Master
Answered on 05 Jun 2019
I wouldn't touch a reit etf. Ask yourself why do you need to pay a management fee and receive a lower yield when you can just look at the etfs holdings and buy into those counters on your own? Unfortunately with the demise of maybank ke's MIP programme, there is no easy and cheap way to buy into the strong reits here. An alternative, which I'm personally considering is to use their prefunded account to buy into counters. You will need to top up the account before buying stocks but the commission rates are lower.

SeedlyTV EP05

Investments

REITs

Gabriel Tham
Gabriel Tham, Kenichi Tag Team Member at Tag Team
Level 8. Wizard
Answered on 24 May 2019
The REIT etf is a basket of REITs, so if the market downturn affects every REIT in the etf, the etf will react accordingly. Having a basket of REITs also protects you from having to subscribe to individual rights issue or a collapse of a single REIT. You get some form of diversification. The etf will rebalance accordingly if there is a rights issue to maintain the portfolio allocation for each reit.
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