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How to invest in reits?
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derekloh
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09-Apr-2010 11:13
Yells: "Long neck goose" |
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jchong71, alligator, operation pesh, Tks Guys for your advice, will try to read more n see site you recommend. Tks Happy investing GOOD LUCK |
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Alligator
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09-Apr-2010 11:06
Yells: "learning from past " |
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yes, it is true, let see how much is dividend you expect from blue chip and reit... says it is 8% per year.. however, just go to analyse the price chart over one year!! each counter has a 'volatility price' in the region of some 20% to 50%!!! so how to talk about trying to get 8% +/- (20 to 50%)??? that is a big reason your expectation on dividend counters investing.. the regular price changes can and WILL wipe up all your goal.. and if you bought at HIGH price you end up with a lot more frustration... Dividend investing is as tricky as any other investment strategy... dun be discourage,,, there are money to be made... many counters... just try not to use ONLY ONE technique or only one indicator such as Yield , PE, NAV, etc...
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Alligator
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09-Apr-2010 10:59
Yells: "learning from past " |
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reit was supposed to be high yield and consistent yield however, during 2007-2008 financial crisis, the real meaning of high yield is fully tested the reit manager might be running very high leverage on their capital. during crisis there is a big issue on securing loan to continue running the operation, reit's asset also get whacked down during bad time, you just need to check their price chart over 2007-2009 and can understand how "VOLATILE' it is on their price when compared with blue chips. this is not to discourage you, but you need to check out risk/reward and history. hope it helps |
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jchong71
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09-Apr-2010 10:50
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derekloh: first and foremost, make the best use of all information on REITS available by going to reitdata.com Very comprehensive set up of all REITS available on SGX. Gearing, yield, NAV. You will see the two that stand out a fair bit is SAIZEN, LMIR (lippo maple ), FIRST reit - low gearing and good yields. SAIZEN no yield because they stopped paying to conserve cash and pay off debts. Go to singaporeanstockinvestors.blogspot.com to see the total convincing analysis of both LMIR + SAIZEN The other point of buy to get dividend then sell off after ex-dividend - likely not to get anywhere because your transactional costs too high for each buy/sell. My $0.02 worth anyways. Please remember that you have to do your own due diligence - profile, risk appetite etc. The REIT data will help you make your informed decisions. Good luck! |
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derekloh
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09-Apr-2010 10:41
Yells: "Long neck goose" |
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Tks operation pesh, i think you are right. you don't only look at yields but also particular at which one like liquiditly which i am not sure of! People mentioned to me that i might get my desired yield% on blue chip on price move rather than stting on months just for their divdend! How truth is it? Also alligator opinion fit the same? Tks |
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operation_pesb
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09-Apr-2010 10:30
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hmmm.. i think the most important consideration here is transaction cost. Provided that you have huge enough capital, I suggest you stick to one or two preferred reits. Also, there are some reits which are less liquid... look at frasercomm's queue and you'll understand what I mean. You might even make a loss if you reit-hop! Again, do your risk/reward analysis before any investment. | ||
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derekloh
Member |
09-Apr-2010 10:23
Yells: "Long neck goose" |
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Tks Alligator and Operation pesh for your advice, I didn't know reits price is not stable as blue chip, will study them thru net more btw kind of like suntec reit, and also fraser comm, first reit n cambridge. Do you think i can switch among these on different ex date; is this worth doing, or just stay with it for quarterly dividend payout? Tks n pls advice |
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Alligator
Veteran |
09-Apr-2010 10:02
Yells: "learning from past " |
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reit was supposed to be high yield and consistent yield however, during 2007-2008 financial crisis, the real meaning of high yield is fully tested the reit manager might be running very high leverage on their capital. during crisis there is a big issue on securing loan to continue running the operation, reit's asset also get whacked down during bad time, you just need to check their price chart over 2007-2009 and can understand how "VOLATILE' it is on their price when compared with blue chips. this is not to discourage you, but you need to check out risk/reward and history. hope it helps |
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operation_pesb
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09-Apr-2010 09:53
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hmmm... maybe u wanna look at suntec reit? At its current price, the yield is slightly above 8% and they are quite consistent with their payout in the last few years. However, I feel that the upside potential is limited (prob ard 1.46 TP). But then again if u're just interested in the yield then probably it would be ok for you to park your money there (it's certainly more than what you can get from a fixed deposit acct). | ||
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derekloh
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09-Apr-2010 09:49
Yells: "Long neck goose" |
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Also, can anyone recommend what reits counter is safe for longer term sound investing with constant proper yield? Every time heard dor example 8% yield; this % is it base on current reit price or otherwise, pls advice Thanks |
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derekloh
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09-Apr-2010 09:43
Yells: "Long neck goose" |
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Hi all experts, I would like to learn about investing in reits because of its high yeild returns. Pls; a few question: why do people choose blue chips from reits whereby reits offer much more higher yeild returns in term of yield % ? can i buy a reit counter only b4 cd and sell after xd, then move to another reit counter again b4 cd sell again after xd, wouldn't i will make more dividend this way? Is there any condition that stop people to do so? Please advice. your help is appreciated. tks |
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