Advertisements

What are REITs

REITs stand for Real Estate Investment Trust. In short, you buy a share in a company that manages and maximises returns from properties owned by them and sold to you via shares. The first REITs on Bursa was AXIS. It was listed in 2004. Returns to investors are in the form of capital appreciation if the price for the shares increases as well as the annual distributions of its income, predominantly, rental of malls, offices, hotels or industrial buildings. If you know about commercial rental, it’s pretty consistent. A lot of REITs pay out up to 90% of their taxable profits. Thus, you can see that the yield is actually double of FD or better most of the time.

Take just 1 hour to study about REITs, key in their names into google and search for its latest financial results and what’s the current yield if you buy and keep as a long term investment.

reit1reit2

Do I have any REITs. At this point in time, no. I love stocks but for property, I prefer to actually spend time and view them. In fact, my wife and I love viewing properties as it allows you to learn more about the property and subsequently the property market. Nevertheless, for those who are saving money for their first property, nothing wrong with putting the money in REITs in the meantime. Thus far, I have not come across an REITs which suddenly lose half of its value. However, I do know of a recent fiasco in Singapore Stock Exchange where a few stocks lost 99% of its value within a short period of time.

 

Next suggested article: Iskandar Property Digest – Nov/Dec 2013

Advertisements

kopiandproperty.com

kopiandproperty.com is everything about property related writings and news. Enjoy reading with a latte.

Related Posts

We MUST change our usual ways. New Malaysia, right?

It’s always very unfortunate when accidents happen and it could have been prevented. Malaysia has had many of these happening within 2018 and I think the authorities have to serious in enforcing all necessary rules and regulations. Workplace accidents usually happen when proper safety management is not enforced either because the supervisors are not serious […]

Read More

Important sign for the property market too; BANKS’ results

When banks are earning higher profits, that’s good for all industries, right? Basic idea, yes. This is because in a bad economy, businesses will not be borrowing too much for expansion. Banks will also be really selective as they do not want their Non-Performing Loans (NPLs) to go up because there will be some borrowers […]

Read More

4 Comments

  • Crystal Teh on December 8, 2013

    It contain the risk, for me, won’t go for this as well 🙂
    I will prefer actual property than REIT 🙂

    • chialih on December 8, 2013

      Buy reit n sell reit is immediate. That is also a main advantage

  • Crystal Teh on December 8, 2013

    Haha, then must always stick in front pc to monitor it 😛
    Compare REIT with unit trust, REIT earn fast right?

    • chialih on December 8, 2013

      REIT has capital appreciation potential in terms of price. Unit trust also have but if compared, then of course REIT is faster. If anything should happen

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Property investment news everyday? Subscribe for free!

An article a day, keeps you updated all the way.

Join 899 other subscribers

LIKE us for property news update, FREE.

%d bloggers like this: