By Calvin Yeo (guest contributor)

Property investing is getting tougher in Singapore. The cooling measures, especially the Total Debt Servicing Ratio, Additional Buyer Stamp Duties as well as the Seller Stamp Duties have made it much harder for Singaporeans to invest in physical properties.

REITs as an Alternative to Property Investments

So what should a property investor do? One thing you can consider is investing in Real Estate Investment Trusts (REITs). REITs are basically trusts which invest in properties. REITs are traded on stock exchanges and receive a special tax treatment. Typically, a REIT needs to pay out at least 90% of the net income to be eligible for tax treatment.

Here are some advantages of buying REITs instead of physical properties:

1. Easily Diversify Into Different Types of Properties and Regions

With REITs, you are not limited to the standard residential and commercial properties which most property investors are ...