Which REITs are in AK's portfolio ?

Dear Ak,

I have some question hope to seek your wisdom in the investing world. Hope that you would be patient with me.

1. May i know currently which REITZ are in your portfolio?

2. I am currently invested in Cache Logistic Trust, AimsAMP, SPH and SoilBuild Reitz, May i know which are in line with yours and the rest that are not in your portfolio, what are the downslide to them?

3. Currently in the market turmoil as well as pending fed rate hike, bond would be more attractive and equities would not bode well. What would bring for the REITZ in the long term? would they be able to sustain?

Hope to hear from you soon

Thank you

 
Hi,

You might want to read the blog posts on my passive income from REITs. You will find them in my blog's right side bar. :)

I don't know what you mean by bonds being more attractive. As interest rates rise, bond prices will fall. Why won't equities do well? You want to search my blog for articles on rising interest rates and REITs. :)

Best wishes,
AK


Related posts:
1. 2015 full year passive income from S-REITs.
2. Why have bonds and which ones?
3. How to approach REITs as investments now?

Get a bigger apartment with a baby on the way.

Hi ,

Would like to get your view on this plan that my Husband was thinking of. At the moment we are staying in a 1 bedder that belong to me that was bought in 2012. The original plan was to rent out this place but ended up stayed in after our marriage. Both of us SPR.

As I am expecting , we have to make plans for the future. My hubby has not own any property in Sg and he was thinking to buy a property for rental and in a way to cash out his CPF. With the rental (estimated 1.8-2k) of the new property, he planned to use the rental to pay my current property and new property instalment and pay the rest in cash. His Budget could only afford a 600K condo. Anything more than 600K will be too heavy for him.

I do have some cash to TOP up if we want to buy a 800K condo but somehow with the current economy situation (plus I am a home maker) and foresee will remain the same for the next 2 years , I am worried and indecisive of whether we should commit purchasing another property plan. What would be your advise? Thanks.

Hi,

1) Make sure you have sufficient cash put aside for emergencies. As you are a homemaker, on a single income, having enough cash to cover 12 to 24 months of expenses is a good idea.

2) You might want to put aside some cash (in your war chest) in case there are good investment opportunities in future since you feel that the economy is not doing well.

3) There is opportunity cost in using money in our CPF-OA. When the gross rental yield is less than 4%, you want to be very cautious. Your $600K condo is expected to have a gross yield 3.6% to 4%. There is a 10% property tax plus monthly maintenance fee which you have to pay. You will also be incurring borrowing costs on the bank loan. The net yield is likely to be lesser than 3%.

Of course, with vacancy rates increasing, rental is likely to drift lower. Real estate is also very illiquid and with Seller Stamp Duty (SSD) thrown in, if there is a need to liquidate, in the short run, the cost will be hefty.

4) Since you are both PRs and cannot buy BTO HDB flats and single PRs cannot buy resale HDB flat, buying a 2 bedder condo for your future bigger family is one option and with a $800K budget, a 2 bedder is well within reach. Move into the 2 bedder and rent out your one bedder or if you would like to strengthen your balance sheet, you could sell the one bedder and not worry about the SSD.

Buy what we need. :)

Best wishes,
AK


Related posts:
1. CCR, RCR or OCR for rental?
2. Buy shoebox apartment in NE SG?
3. What to do if I need a bigger home?