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 REIT, real estate investment...

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xiang49
post Jan 14 2008, 11:55 PM

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when investing in REITs you might also want to consider whether the tenants are related to the issuing company or not. This is what happened in Singapore earlier. The tenants of the propoerty were actually the subsidiary of the company, so the company can afford to rent those units to them in a higher than market price. After the rental contract cease, those subsidairies cannot afford the high rental price and they moved out from the property. So the issuing company has no choice but to follow back market rental price and the whole REIT price collapsed...

So is better 4 u to go to that building n look for their directory and check the background of the companies there...

haha, just my 2 cents...

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