Real Estate Investment Trust, a.k.a. REIT, is a popular income generating investment nowadays. It is also one of the 5 core Income Generating Assets that I recommend for retirement planning. But the risks of investing in REITs are not well understood.
In the course of my work, I realize many people have these common misperceptions:
I don’t want to take the risk of investing in stocks, I will just buy REITs REITs are safe It is ok even if the REIT price drops, I can still collect dividends The lower a REIT’s price is, the better, so my dividend yield is higherLike most investment thesis online, these claims are half-true. Can you really rely on REITs for your retirement income?
REIT investing was not always a common topic. But people are buying REITs today as if it is a risk-free asset. It is understandable because Singaporeans value property investment and always
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