Monday, December 22, 2014
Is it a good time for REITs now?
A very small portion of my portfolio consists of REITs, which can be a stable asset to hold on to. A typical REIT can give you returns of up to 10% a year as dividends, which comparing to bank rate of 1% is pretty attractive. However, if you buy REITs when interest rates are high, you probably got a good discount for it. But as interest rates had remained low for a while, the price of REITs has inflated a bit. Risk of interest rates hike remains. Therefore now should be a time to wait at the sidelines for the media to blow up an interest rate hike issue for REITs to be attractive again.
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Will get back to your blog shortly as I like to get daily updates on Share Market Singapore and its IPO shares.
ReplyDeleteHey, with this latest market updates, do you also provide intraday tips for trading in singapore market.
ReplyDeleteBy looking at the current price of REITS, one can say that investing would be profitable into this. As up to 10% return is expected from the investments done in this sector.
ReplyDeleteI won't say that REITS is a buy currently, there are still signs of economic slowdown. They have potential to correct further.
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