The Asian investment philosophy emphasizes on the merits of having real estate within an investment portfolio, preferably one that generates regular cash flow. Some of the wealthiest people in Asia own multiple real estate across the region and have benefitted greatly from its capital appreciation.
However, the biggest barrier to entry for real estate investment would be the high capital outlay required. But hope is not lost for we can still gain exposure to the real estate market through an investment vehicle called a Real Estate Investment Trust (REIT) which could be purchased in small allotments.
Having the characteristics of both real estate and stock, REITs provide investors with diversified exposure to numerous properties both locally and globally through a single investment vehicle. These property developments include retail (e.g. shopping malls), industrial, commercial, hospitality and data centres (NEW!).
Investors of a REIT are entitled to dividends generated from rental income of these properties. REITs typically pay out dividends quarterly or semi-annually, providing investors cash flow regularity which is a major plus point for income investors. It is also good to note that because of the tax incentives REITs receive, it is common to find REITs paying out dividends of 5-7% annually.
If you would like to find out more about how REITs can generate regular passive income in your investment portfolio, REIT Symposium 2018 would be a great platform for you to do just that. Meet the team of executives behind some of the most renown REITs in Singapore that own investment-grade properties across the region.
For readers of CapitalistLAD, instead of paying $18, get it for FREE using this promo code “capitalistlad”. We’ve only got limited tickets up for grabs so register now with our promo code to avoid disappointment!
Like our content? Drop us a like on Facebook and be the first to receive updates! More importantly, share this article with someone who may benefit from it!
Till next week, have a good weekend!