I feel up to 10k investment is fine if I have surplus USD. Target dividend = 6% of the initial investment amount.
Li Qi has more experience with sREITs and felt the supply/demand dynamics are more like stocks than properties. But I guess long-term trend and DYOC are the things to focus on, and sReits may resemble rEstate.
There are many online articles comparing REITs vs real properties. It may be too time consuming to read all of them.
— if a SGX REIT offers consistent 5.5% yield without the legwork, then i think it’s comparable to PeakRetail in rental yield.
— Compared to real properties — reliable dividend on the back of a real estate asset with capital appreciation potential.
- 🙂 much smaller quantum
- 🙂 much better credit risk
- 🙂 much more liquid .. lower transaction cost, faster completion
- 👎higher volatility
- 👎capital appreciation much lower, if any. Probably similar to the capital appreciation of stocks.
Q: if you hold 10Y, is there a good chance of appreciation? I feel yes for real estate in parts of Asia, tristate but but not in many U.S. states and not for REITs
https://www.99.co/blog/singapore/reits-properties-investment/ lists many risks, complications and active management required of landlords. With these “risks”, the return is presumably much higher than REITs. However, the Singapore data in this web page proved me wrong.
— Compared to a high-dividend stock
I don’t want to take further risk than REIT. I feel a dividend stock would have much higher risk, too uncomfortable for me.