REITS in Singapore

[abbby]

Can any experts advise if buying REITS the same as buying any other type of stocks? How is REITS better than normal stocks or vice versa? Am thinking of investing in REITS..Frasers, Ascott Maybe?

[Ignorant1]

Can any experts advise if buying REITS the same as buying any other type of stocks? How is REITS better than normal stocks or vice versa? Am thinking of investing in REITS..Frasers, Ascott Maybe?

apples and oranges.

REITs are yield seeking devices. Rents collected from the property are paid to reit holder (90% by law).I Think of it more as a replacement of bonds in my portfolio.

Without getting into specifics, I do 2 things

1) diversify into sectors ( office , residential , hospitality ) etc

2) I always buy below price to book ie you are paying price below the underlying liquidation value of real estate . And sell it when it becomes fair valued .
Some may say this is like catching falling knife and that’s where rule number 1 comes in .

[PNGMK]

I'd be very careful about REITS in a rising interest market and falling commercial space market. A few US ones are going bankrupt as we speak.

[jalanjalan]

1) diversify into sectors ( office , residential , hospitality ) etc

2) I always buy below price to book ie you are paying price below the underlying liquidation value of real estate . And sell it when it becomes fair valued .

I second this, plus watch the news, and read their announcements. They may merge and change focus, and for overseas properties they may do things like change currency for their rent collection. Then you may have to rebalance.

[malcontent]

In general, REITs will have a lower total return compared to the broad equity market in the long-term. If you want to add REITs keep it to a single digit % of your total portfolio. This is not just my advice, anyone worth their salt as an investment advisor will say the same. Your portfolio should be invested primarily in a broadly diversified, low cost equity index.

For non-US persons, it is widely accepted that investing the bulk of your portfolio in London traded ISAC (or similar) is the absolute best way to get equity exposure from here. It is the most tax and cost efficient (just 20 basis points), and includes thousands of stocks from around the world in one simple investment.