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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REITs

Investments

SeedlyTV EP05

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 5. Genius
Answered 3w ago
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 4w ago
Kenneth: I made money from First reit Rusmin: Invest bitcoin

SeedlyTV EP05

Investments

REITs

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)

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

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.

SeedlyTV EP05

Investments

REITs

Private placements definitely dilute the retail holders but at least retailers don't have to cough out the money. It is also more efficient for the company because it is faster. Sometimes a major deal needs to be closed quickly or they can find someone else. There is alot of admin fees and expenses to do a public rights issue. So, they also saved on cost savings. Preferential offering is slightly different. It is open to existing holders, not just big instituitions. So it allows loyal shareholders to participate and subscribe at a discount.

SeedlyTV EP05

Investments

REITs

Wnk
Wnk,
Level 3. Wonderkid
Answered 2w ago
Hi there! Yes, definitely! REITs, like all quoted equity instruments, are subjected to market adjustments and fluctuations. The individual type of REITs may be subjected to their own property cycles. For instance, retail REITs like Capitaland Mall Trust may face a downturn if their portfolio of malls are facing vacancy issues. First REIT, with its portfolio in Indonesia healthcare institutions, was recently subjected to a sell down due to a weakening currency (rupiah) and issues with their main sponsor. A correlation between the future decrease in its distributions and share price is often noted.

SeedlyTV EP05

Investments

REITs

Rusmin
Rusmin,
Level 3. Wonderkid
Answered 4w ago
A short answer to this would be interest rate affects the borrowing cost since REITs usually take on debt to invest in commercial real estates. So rising interest rate may cause the cost of borrowing to go up and vice versa.
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