Most people here thinks REIT is bullet proof. That's why I want to educate them.

Your statement like Sell / Don't Buy is not justified with your ideas / input at all.
What is education without solid reasoning ?

why is it so? i see it as an alternative to fd with extra returns and extra risks too. 5+% p.a. is good enough for me already i think.

There is no such thing as bullet proof investments. There is only calculated risks and projected returns.

yup. no such thing as bullet proof. Even bank also.
just the instruments and risk are different.

I glad to here people knowing that this sector is not bullet proof. But I seen one guy here saying this is bullet proof?
Do you knowing what is the risk?
Do you know what investment tool is bullet proof?

Mind to share, with my respect i want listen & know.
Let me guess ASB or Goverment Sukok 5%?

lol.. Later he/she may she Government is not bullet proof due to government may have default risk too although it can print $. What is surely bullet proof? Get $ put in FD also bank maybe bankrupt together with government bankrupt.

Bullet proof glass will be bullet proof as it has been experimentally proven that it can stop bullet?

if wanna discuss this way, nothing is bullet proof...just spend all the money now before the value deflate, before you die, before shit happens.

We all love to hear the answer to "what investment tool is bullet proof" ... Please share

The only bullet proof thing is....(drumming....)....bullet. Because it has been proved to be a bullet before being called a bullet.

HAHAHAHAHA

Everything you invest also got risk. This is because risk is a measurement of potential gain. If you want low risk, then be prepared for low gain. Even putting your money in FD have some degree of risk, but it is so small, then it might as well be zero. FD have a bigger hidden risk which is inflation and currency devaluation, which eats into you buying power over time. This is called inflation adjusted rate of return.

However there are SOME investment products which has a high reward vs. risk ratio, but is mainly government skewed like ASB. Even ASB have risk as in year 2008 it DID fall by 20+%, but is made up by paying dividend from past gains. But this is managed product and not everyone is entitled.

Buying property is also not risk free as many people have found out in 1997, 2008 (not yet in MY) where property prices plunged. Although many people made a lot of money in property, the risk will catch up sooner or later, nothing goes up forever.

If you want to talk about REIT, yes REIT have undeniable risk, it could be devaluation of property, rental problems, interest rate goes up, cash flow problem etc etc. It happen in 2008 especially in Singapore. Not all REIT is the same, some are safer, some are riskier, hence there are different yield accorded to the market.

You cannot fully eliminate risk, but you can manage it, those who are actively invest knows about risk and how we can move them to our favor with higher reward vs risk, which is called sharpe ratio. Diversification is a very useful tool to reduce your overall risk, but over diversified is also not good. That being said, you be an idiot if chase risk blindly. Always consider risk before reward.

To be successful in investing you cannot fear risk, you have to embrace it, depending on your risk tolerance. For every dark cloud there is a silver lining. Fear is the not the enemy it is opportunity for you to buy things at discount. If you like to shop when the supermarket is having big discount, why do you run away when the stock market is having a mega sale?

REIT bought at the correct time can generate very handsome returns and the perceived risk if you look back, is not all that it turns out to be. For inspiration google for a blogger named AK71 blog, there you see some one who bought heavily into REIT when the people are dumping REIT with yield of 15%-20% in 2008, now he can practically retire.

Risk is your friend, it is what generate value. Running away and fearing risk is a sure fire way to have negative inflation adjusted rate of return. Remember to buy into risk only when it is in your favor.

This post has been edited by gark: Dec 31 2012, 12:06 PM

Thanks for the website, gark.

O-ing my mouth & truly inspiring. Thumbs!

Click here for those who lazy to google.

i Strongly agree with the detail sharing . Good entry level = Great return .
My personal reits portfolio sun, star, IGB reits.

too bad it is not mega sale now in malaysia index.
you can consider to look at EU/US for mega sale counters.

well said gark. Salute !

hi, Benedict newbie here and i got a few questions to seek for advice from sifu here. Currently interested in BSDREIT & STAREIT.

for example

ABC stock rm1.00 and i brought worth of RM10000

1year later, ABC stock apreciated to RM1.50.
i will receive 5% (RM500) dv.

what if i sell off my stock at RM1.50?
meaning my gross profit is 50% +5%(from Dv) = 55%?

minus the buy/sell water money...
most likely 10%...

y? y? y? sunreits drop so much?