Sunway shopping or hotel voucher

1. Dividend and capital gains are not taxable in Singapore.
2. Income received from out of Malaysia, if you are a Malaysian Resident are not taxable (income tax) as well, but you need to declare it.
3. For more info and analysis on SGX REITs please visit this Website.

So effectively, no tax.

This post has been edited by gark: Oct 2 2010, 12:27 PM

Use spreadsheet lar... If I don't manage my investment via spreadsheet, I don't even know what I am holding.

This post has been edited by gark: Nov 11 2010, 05:24 PM

Wonder if Real Estate Unit Trust (REUT) in Malaysia enjoy tax free status if they distribute >90% of income? Hope it is not a Unit Trust which buys other REITs

At 5% expected yield for Queensbay, I understand why they are not interested. It will dilute their earning per share, and then financing in malaysian is getting quite high. They would have hardly any margin left after financing costs. I would not buy a shopping mall for 5% yield.

Singapore is much different, their financing is much lower than Malaysia as their interest rate is very low, so even though they bought at 5% yield, they would still have substantial margins to boost their earnings.

IMHO I really think the owner of Queenbays Mall made a killing with the sale at 5% yield. Lately REIT's are getting a bit out of hand, buying low yield properties, need someone to slap them around a bit and lower their prices and increase their yield.

If interest rate continues to go up, the the REIT prices are going to continue to come down.

This post has been edited by gark: Dec 24 2010, 09:15 AM

That day I saw a >RM1 million shop lot yielding only 2.5%, even though with Giant hypermarket in front of it. That is even worse, yet still lots of people still want to buy. The agent tell me all selling like hot cake, many units changed hand (and re-change hand) already, he doing very good business (he drive nice new BMW btw). I told him all the people who buy must be 'siao' one, no need contact me.

BNM, quickly raise more interest rate!

This post has been edited by gark: Dec 24 2010, 10:34 AM

You can open an account with Phillips security for Singapore shares transaction over the internet. Charges are reasonably low at 0.28%, min SGD 25. Webpage. Otherwise local broker's brokerage is not too bad either...

This post has been edited by gark: Apr 10 2011, 05:34 PM

The merger makes no difference to the REIT....

Must have patience when investing. Otherwise it is your emotion and not your brain making the decision to buy/sell.

For REIT's you don't need to see PE, because PE can be distorted by valuation gains, which you can see but not touch.

DY is the better term to compare the performance of REITs, and also DY growth & Gearing. Other than that PE, BV, cash etc hold not much value.

This post has been edited by gark: Jul 25 2011, 07:07 PM

Wah.. you buy based on your platform's PE ah? That is very very dangerous, often the PE shown on the platform is not accurate. You have to read the P&L sheet. There are many items such as one off gains, revaluation, currency difference etc which affect the PE. Never buy any stock based on platform PE, read the P&L.. and especially operating cashflow and then conclude your PE.

This applies to all stocks and not only REIT's.

This post has been edited by gark: Jul 26 2011, 02:38 PM

There are many things to consider other then PE, if just taking the lowest PE to be the best bet, then don't you think anyone also can invest successfully. Heh, I never once before used the PE is the media or platform as a guide, as they are often misleading.

BTW, saw your blog. You a fellow SJ'er?

This post has been edited by gark: Jul 26 2011, 04:26 PM

I see, well I have been there since 20+ years ago, so I am old timer SJ'er liao, used to be super cheap, ulu kampung place, but now....

Back to topic, the only REIT with reasonable growth is AXREIT, so I am monitoring diligently.

This post has been edited by gark: Jul 26 2011, 06:21 PM

Goreng REIT is a good strategy too.. but you need huge capital...and low trading fee. I have previously read someone's track record, they can get >5k per month consistently from goreng-ing REIT's

REIT are relatively stable... so with large capital & low trading fees, you might eek out 0.3%-0.5% gain in each trade (after fees). Lets say you trade once a day, for 26 days the miniscule returns will be compounded, I am sure you can count the returns? not bad right?

If a trade do fail, mah keep for dividends lor... and sell after the price goes up again. Worse come to worse REIT can at the most fall 1 cent/day only mah...

Heh I am still learning this methodology and still don't have the guts to try it out yet.

No need book lar, you can work out the logic mah. Lets say a prominent REIT, sell queue 1.20, buy queue 1.19

Lets say Buy 1.19 x 50,000 units = 59,500
Trading fees = (0.08% +0.03%) x 59,500 =65.45
Stamp Duty = RM 60
Total buy cost = 59500+65.45+60 =59625.45

And immediately put in sell queue...

Sell 1.20 x 50,000 units = 60,000
Trading fees = (0.08%+0.03%) x 60,000 = 66
Stamp duty = 60
Total Sell cost = 60,000 - 66 - 60 =59,874

Total profit = 59874-59625 =RM 249

Total returns = 0.418%, then rinse and repeat ... the higher your capital the more you earn, but spread the risk over several REIT's ....But there is risk if the reit do fall, you will lose your trading fee... reits usually tend to go up near distribution..

Also for that kind of trading fees, you cannot use contra, must be usually cash upfront account...

If lose money don't come find me yah.

This post has been edited by gark: Jul 28 2011, 11:30 AM