REITS, an appreciating gem in Singapore

Blackden, R (2012) says "Federal Reserve chairman Ben Bernanke has announced a third round of quantitative easing in a bid to help America's weakening economy, as the IMF warns that Greece will need a third bail-out.  America's central bank said it will purchase $40bn (£25bn) of mortgage-backed bonds a month to stimulate the housing market and keep long-term interest rates low."

US is slowly recovering as they are now purchasing back their debts. However the Euro Crisis will need a longer time to be resolved as the IMF warns of the third bail-out of Greece as stated by Blackden, R (2012).

The odds of the third bail-out is unknown, but if it happens, stocks will continue to go on the upward trend as inflation rates increases.

The rationale for the upward trend of stocks is because when more liquidity is injected into the Greece economy, the liquidity will flow into countries with good returns and stable economy. Singapore is one example of a stable country with AAA rating by Standard and Poor.

REITS in Singapore had been the best performing assets. If you do not have enough money to buy property assets which was likely to be an uptrend in singapore for the next 5 years due to land constraints, you can invest in REITs in Singapore for good returns.

Some of the REITS:

• Starhill Global
• CapitalMall Trust

Few types of REITS to look at

• Commercial Warehouses / Factories
• Retail
• Hotels
• Residences
• Offices

Reference List

Richard Blackden 2012, Federal Reserve announces QE3 to aid US recovery, viewed 14 September 2012
< http://www.telegraph.co.uk/finance/economics/9541857/Federal-Reserve-announces-QE3-to-aid-US-recovery.html>