er.. bro, the entry price / cost determines one's dividend yield % leh.
U really don't care much about entry price meh?

I would take 6% and above to be a good return for me

Want to cry look at FD 3% only , cannot even cover inflation.

Don't even think of FD.....I only put in FD when I still can't figure out what to do with the money yet..at least for a mth tops

er.. FD VS REITs - IMHO, cannot just compare yields % leh.
FD has "security" or surety of capital back
REITs tak da. Ask those who were holding REITs Jan 2008 till Mar 2009, how much did their REITs' prices fall.

Some of course say, no probs, hold on sure get yield. Not scared.
Sure boh when U actually see your REITs' worth dropping like 20% to 30% within a year.
ie make 8%pa net but capital loses (price down) 25%pa.
Totally cool and no fear/worries?
If U say, aiya - only 1 year+ mar, please remember, when it was happening in 2008/2009, we do not know how long that 25% to 30% losses will stay, nor do we know how much further it will fall.

This post has been edited by wongmunkeong: Aug 14 2012, 01:07 PM

Well, currently my portfolio for REIT is only 2.5% , considered ok right? If I put in 50% to REIT of course will cry when it falls lor...

This post has been edited by soul2soul: Aug 14 2012, 01:12 PM

Mind to share how you proportion the rest of the 97.5% in your portfolio ?

60% PNB funds and longer term FD (5 years)
25% Short term FD (1 month to 1 year)
2.5% REIT + stocks
2.5% Bond
5% Cash
5% Downpayment + repayment for 2 properties

I have very low risk appetite but am trying to diversify into stocks/REIT but I will keep them maximum 5% now, and will increase to 15% once there is a huge discount in the market.

Any comment?

Heard not a good time to enter the stock market and property, but I heard this 2 years ago and the market/property hasn't crashed but my savings in FD has depreciated by taking inflation into consideration.

So my hands a bit itchy now trying to go into REIT, hopefully can get a bit more dividend than FD.

This post has been edited by soul2soul: Aug 14 2012, 01:55 PM

Waiting for entry price which is low enough... takes patience and loss of dividend accummulation, right ?
I just buy the REIT and keep to earn dividends... don't care about DY% (as it's just a number).
Money into my bank account is much better (i.e. passive)

Mine is more drastic to reduce headache

40% - Cash in Hand (but keep a portion in FDs by monthly term)
30% - Equity + REITs (20%)
30% - Properties

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Added on August 14, 2012, 2:02 pmBut you utilize higher cost of entry...whereby the extra cost could actually be invested somewhere else

This post has been edited by funnybone: Aug 14 2012, 02:02 PM

What if I don't have anywhere else to invest ?
I don't have millions to invest... thus 1-2 sen don't make much different.

Er..don't care about DY% coz it's just a number?
Well, if due to the price of a REIT, it's NET DY% is LESS than 4%, U mean U'd still buy?
VS
say bonds or bond funds which have averaged 5%pa to 6%pa?
VS
say FDs 1 year tenure 4%pa+/-?

Serious ka?
I salute U on your focus if U are that gung-ho about REITs.
Personally, i wouldn't touch any REITs if the DY% is less than 5% - if my intention is yields %. Not worth the additional risks.
er.. i'm ignoring asset allocation and other stuff lar yar, just focusing on yields since U mention DY% doesn't matter to U "(as it's just a number)"

a portfolio for retiring.........

er.. isn't it because one doesn't have MILLIONS to invest, one should be prudent enough manage costs of investments and also opportunities?
and there are ALWAYS "somewhere else" to invest unless one is in love or fixated on only specific investments hehe. No right / wrong, just a bit dangerous mindset in my POV

I know.. too conservative right? Can you share your portfolio? I have very low risk appetite. Looking at stocks crashing make my heart very weak... that's why don't dare to buy shares at this time. KLCI looks a bit too overvalued.

I read that you invest in Singapore REIT, better than Malaysia?

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Added on August 14, 2012, 2:57 pmWell if there is going to be an economic downturn, any mutual fund/ bond funds/ REIT/ Properties/ Stocks will be hit. The only place you can earn money during downturn is

1. forex
2. shorting futures
3. parking cash in banks (with high interest)

This post has been edited by soul2soul: Aug 14 2012, 03:00 PM

dont scare me.... i am a small player into reits....

what made reits to drop 20% - 30%???

err.. in 1997/1998 and 2008/2009 kabloey, bond funds did very well comparatively.
Heck, i still remember 10%pa net returns those yesteryears and more recently 8%pa to 9%pa during 2008/2009.

Anyhow, you're right in these sense that when things go kabloey, several asset classes will be affected. I was just curious why Ronnie is so gung-ho about REITs, not even caring about price buy-in nor DY%.

Just a thought

If market crash..a REIT worth RM1 can become RM0.10 anytime

er.. U weren't "around" to witness 2008/2009?
U know - Subprime kablooey causing credit crunch causing banks to NOT TRUST each other causing a whole hot of kaka in the world (amongst other things).

Hey, that was just about 3 to 4 years ago wor.

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Added on August 14, 2012, 3:12 pmheheh - don't scare newbie lar FunnyBone
Even SGREITs' volatility doesn't go 90% belly up (thus far) i think heheh.

This post has been edited by wongmunkeong: Aug 14 2012, 03:12 PM

Hi S2S

Instead of looking at MY portfolio maybe you should answer these questions

a) Age
b) Retiremnet
c) Targets between now and retiremnet
d) Risk appetite
e) Present evaluation of the mkt

Its not wrong to have a low risk appetite. Only means you may win/lose less!

i was around but not in the stock market.... dont have funds to invest....

i am just into stock market 1 yrs ago......, thinking to create a bit of passive income....