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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.


4 comments:

  1. Will get back to your blog shortly as I like to get daily updates on Share Market Singapore and its IPO shares.

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  2. Hey, with this latest market updates, do you also provide intraday tips for trading in singapore market.

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  3. By 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.

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    1. I 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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