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SINGAPORE REIT: ALTERNATIVE WAY TO INVEST IN SINGAPORE REAL-ESTATE

Owning a piece of land in Singapore and generating income through it is now possible. Singaporeans can now make their dream come true by investing in REITs.

Here Multi Management Future Solutions presenting some fascinating ways to invest in Singapore real-estate, read on to know more about Singapore REITs
The fascination of owning a property in Singapore is the ultimate dream of every Singaporean but owning one has become an expensive dream as the property prices have reached sky – high. Even though the property prices in Singapore have seen a spike hike but this has not limited the fascination of ordinary Singaporeans of owning a piece of property. And to make their dream come true Singapore REITs play an important role.

 

What is Singapore REITs?

Singapore REITs stands for Singapore’s Real Estate Investment Trust also known as S-REITs. It is a trust of listed companies that have come together to pool the investor’s money and invest it in purchasing a property. Apart from purchasing the property Singapore REITs has also the taken the responsibility of managing all such properties and also look into renting out all these properties in order to collect rent. The collected rental income is then distributed amongst the investors by Singapore REITs after deducting their fees.

Investing in REITs Singapore has seen a spike and there are nearly 40 best REITs listed on the Singapore Exchange where ordinary Singaporean can invest their hard-earned money and ripe benefits similar to investing in stocks. Singaporeans have the freedom to choose the Singapore REITs of their choice. The Singapore REITs listed on Singapore Exchange are typically of 6 types namely:

1. Commercial Singapore REITs: these typically invest the investor’s money in purchasing commercial spaces like office buildings
2. Retail Singapore REITs: these typically invest the pool of money in purchasing retail spaces like shopping malls, shops etc.
3. Industrial Singapore REITs: these invest the investor’s money in purchasing industrial spaces like the warehouses, data center,     logistics facility etc.
4. Hospitality Singapore REITs: These Singapore REITs invest the investor’s money in purchasing hospitality spaces like hotels, serviced residences, restaurants, boutique hotels etc.
5. Healthcare Singapore REITs: the pool of investor’s money is utilized to purchase healthcare spaces like hospitals, nursing homes etc.
6. Singapore REITs ETFs: this is a passive investment tool which is used to invest the investor’s pool of money in numerous other  REITs.

 

How to invest in REITs?

Investing in REITs is similar to trading shares on the stock exchange. For trading and investing in best REITs, you need to hold two accounts namely: SGX CDP account and Brokerage Account. But if you have already been investing in shares and trading on stock exchange then investing in REITs Singapore will be a cakewalk as you already must be holding both these accounts. While if you are a first-time investor then you can easily open both these accounts by applying for them in a local brokerage firm and within 7 days both of the accounts will be operational. After opening accounts the next step is to invest in best performing Singapore REITs.

Following are the fundamental criteria for choosing best performing Singapore REITs:
1. Consistent Growth: the best pointer to judge the best REITs is to analyze its consistent growth in DPU. DPU stands for distribution per unit it is the unit of returns that is paid to the investors for their investment in the Singapore REITs. Performance of DPU is a fundamental parameter of judging best performing Singapore REITs. A stable DPU or consistently growing DPU is a reflection of Singapore REITs providing a stable stream of income.
2. Performance of Manager: Managers are solely responsible for investing your hard-earned money in buying, renting and financing of properties. Analyzing the performance and interest of your manager is very important as they are the caretakers of your properties in Singapore REITs. A good performing manager will work towards providing sustainable growth of your DPU. Thus it is important to keep a close watch on the competency of the manager and evaluate his capabilities by scrutinizing the decision on operational perspective.
3. Future Growth: After evaluating the past performance of particular REITs, it is important to evaluate your shortlisted Singapore REITs on the basis of future growth parameters. Understanding the parameter that will spur the DPU and selecting the best Singapore REITs is a wise decision.
Thus investing in best performing Singapore REITs is a convenient way for investors to start investing in property. But before investing it is recommended to carry out an intensive research and choose the best Singapore REITs as per your financial need.

The post SINGAPORE REIT: ALTERNATIVE WAY TO INVEST IN SINGAPORE REAL-ESTATE appeared first on Multi Management & Future Solutions.



This post first appeared on KLSE Market Watch For Bursa Malaysian Investor, please read the originial post: here

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SINGAPORE REIT: ALTERNATIVE WAY TO INVEST IN SINGAPORE REAL-ESTATE

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