yalor, no divident?

So, sunreit drop 3 sen coz need to fork out $ to refurbish mall while CMMT drop 6 sen coz will issue rights.

Jeez, don't anybody goes for long term value investing no more?

Today drop is just a sudden last min move by some investors, do not take 1 day trend or price movement especially a last min move to conclude anything.
The drop CMMT of 6 cents is just a last min transaction, all day long it did not transact at this price.

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Added on March 17, 2012, 12:06 amThere will be dividend, reit is required to distribute its income at least 90%, only then they can enjoy tax exempted status.


This post has been edited by cherroy: Mar 17 2012, 12:06 AM

Point taken

So in the long run, if the global or local economic condition recovers (or at least no crisis), reits price will go up steadily right?

*Axis Reit were once RM1.++ and now it's RM2.7!

This post has been edited by bryan5073: Mar 17 2012, 12:32 AM

Let's revisit the CAPM model shall we.

The beta of KLSE is taken as one and her annualised return is 20.39%

REITS beta vis-a-vis KLSE is approx 0.32, sourced from bloomberg finance website.

So using the CAPM mode, I calculated that for the risk I am exposed to my reward should be 8.9%.

[Rj = Rf + beta x (Rm - Rf)]

Since my reward now is more than 8.9%, I should sell if not, eventually the price will go back to its steady state.

Xuzen

This post has been edited by xuzen: Mar 18 2012, 07:27 AM

Heh, queue for CMMT starts at 1.360. Too bad for those hoping to pick it up at 1.330.

for those who paid 10% downpayment for the ACTUAL real property and getting rental income monthly
izit really a good deal? it also rides together with inflation and can be sold if wanna cash out or refinance



eg. 460psf to 600psf
http://www.propwall.my/subang_jaya/e-tiara

any idea hold real hard property better or hold the reits better?

0.97 to 1.22 1.28 to 1.83 1.05 to 1.36

Hard to compare, as not same fruit, not even same type of food.

Rental income only valid for condos in city as landed properties every where else, rental yields cannot compare after the spike in property prices.

But in terms of liquidity, REITs is much better. Less headache in terms of maintenance. No need to worry much about tenants complaints. Aka a managed property.

Plus buying an actual property is serious commitment and maintenance. Properties might have a better yield calculation wise, but too many uncertainties in tenants and risks. This you managed yourself, if you actually hired a property manager, the yields itself might not be as attractive unless you already own a previously paid off property.

Like I said, it's 2 different type of investments as the risks, liquidity, personal time investments, etc. Not same type of fruit.

You are comparing in wrong way.

Paid 10% downpayment for self-own properties and getting rental income is a form of leverage.

Buying reit, you need to pay 100% cash on the purchase, there is no leverage on personal side.

Both risk is different to start with, how to compare?

It is not yet taking into account, of hassle of management of self-own properties, and liquidity issue both are different to start with.
For eg. can one invest in a property just merely 10k, without further commitment/leverage risk in self-own property? No
But reit can.



This post has been edited by cherroy: Mar 19 2012, 03:30 PM

ok, assuming the person owns a prop to stay liao. now got excess savings in fd of RM50k
would it be better to sailang into reits or buy a property for investment
its just food for thought but forumers all said its comparing not same, so close case

Currently there are 15 Reits in KLSE

Just a funny thought, is there anyone here buy all the 15 Reits?

I did a quick calculation, it needs less than RM20k to have all (assuming you buy 1,000 shares each).

Which is better?

A) Buy all 15 M-Reits at 1,000 shares each, or,

B) Choose 3 Reits (could be more, or less) & focus on buying more later.

Have you check out this topic started by prophetjul, interesting, wish more inputs & debates.

Reits VS Properties
http://forum.lowyat.net/index.php?showtopic=2207790&hl=

Option A gives you diversity....

interesting, thanks

B) Not all reit are the same.

Too diversify can be as bad as no diversify.

For discussion sake, I'm currently in the position you describe. If I were to make a decision to invest either in an attractive REITs or a property I like, I would have to go for properties. As long as I'm financially comfortable to pay for another property.

Howerver, if I do not feel I can handle another long term commitment, I would have to choose REITs if the yields are attractive enough.

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Added on March 19, 2012, 3:51 pm That would be a nice to have, but wouldn't it be a bit headache?

This post has been edited by skiddtrader: Mar 19 2012, 03:51 PM

I think buying all the reits would over-diversify already. It's against Buffett's philosophy already - too many stocks, cannot focus. Besides, buying so many reits at one go would cost a lot of entry fees (is this the right term? ).

Minimum cost for CIMB is RM12 for one stock so RM12 x 15 reits = RM180!

IMO, focusing on the reits' industry looks like a better option, say if one chooses retail reits or healthcare reits, which are IMO very stable reits. Office reits, last time I read, aren't doin well coz occupancy rate is very low, especially in Klang.

learn2earn8,

1. With savings of RM50k, I don't think you have a lot of property choices (e.g. the maximum you can go for is a RM250k property).
2. I personally do not like debts. Any investments with debts will erode my profit. If I want to buy anything, I prefer cash. I don't even use credit cards because it is a form of debt.
3. Buying properties is a long-term commitment (when I say long-term, it is too long). Anything could happen in that 15-20 years.

This is my own opinion. So you be the judge.

panasonic88,

It is not a good idea to buy REITs in the industry you already own. You should not diversify the companies, but diversify the industry.

Not a good idea as you are buying into the same asset class, hence not consider diversification.

Xuzen

@skid
@cherroy
@Ronnie
@bryan5073
@jordy
@xuzen

Thank you very much for your inputs.

Hello Jordy! Long time no see!

So you are not Robert Kiyosaki follower they love debts. The more the happier.