When would I invest in ESR-REIT again?

Reader says...
This is my first email to you although been following your blog for about 3 years.

You are an inspiration to me cause although you are 1 year younger than me but you have already achieve financial freedom long ago.






Understand that you have been blogging about not comfortable with ESR and VIva REIT but you also mention before an investment also depends on the price.

So I would like to find out from you at what level will you consider investing in ESR REIT.

Vanishing in less than 15 years.

AK says...
Absolutely no interest.

The whole deal is a godsend or a lifeline for VIVA (which is a ticking time bomb) but rubbish for ESR-REIT.

Yes, I think ESR-REIT got the shorter end of the stick and the shareholders paid for this and will continue to pay for it.






A big chunk of VIVA's portfolio have land leases which will expire within the next 15 to 20 years (see related post #2 at the end of this blog).

Another big chunk of their assets would see a drop in income as they convert from master leases to multi tenanted buildings.

Income support for UE Bizhub East is set to expire later this year.






ESR-REIT will be taking over this horror of a baby.

It would haunt them (mostly the common shareholders of ESR-REIT) later.

Of course, having said this, if there should be a big crash in price, maybe, then, I might take a look. ;p






Related posts:
1. Merger of ESR-REIT and VIVA.
2. VIVA more attractive with 9% yield?

Singapore Savings Bond short term still more rewarding.

I blogged about the Singapore Savings Bond (SSB) earlier this year and shared how it made sense for me to park some of my spare cash in it.

It is considered near money (with no penalty for early withdrawal) but still not as near as money in a savings account or stored in a moon cake tin at home.

Who stores money in a moon cake tin at home, you asked?

Alamak, if you asked that, you must be new to my blog.

OK, I know.

Bad AK! Bad AK!

Easy to apply with internet banking.

Anyway, I did not put in the max $100,000 which each Singaporean is allowed to have in the SSB earlier in the year because I suspected that with interest rates rising, the coupon could be higher later on.

It was 1.55%.

Now, 6 months later, it is 1.72%.






After receiving a chunk of change from reducing my investment in ComfortDelgro, I want to lock up some of the gains in my war chest.

So, I will be putting some money in the SSB again.

With this, still, I would not be maxing out the allowance of $100,000 per Singaporean.

The closing date for application is 26 June 2018.

Plenty of time.






For more on why I like the Singapore Savings Bond now, read the related post below.

Related post:
Singapore Savings Bond (Jan 2018).