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Why AK invests in REITs?
By A Singaporean Stockmarket Investor (ASSI)  •  March 18, 2022
Quite a few recent comments were about REITs. So, a blog on why I invest in REITs is probably a good idea. Some people are worried that impending rising interest rates will mean REITs doing poorly. After all, REITs are all leveraged to some degree and higher interest rates will surely burden REITs. However, compared to us directly investing in a property, REITs are probably more conservative when it comes to borrowing money with allowed gearing capped at 50%. We are allowed a higher gearing level in the purchase of a property, in comparison, with 70% or 80% LTV being the norm. Of course, property valuation has to be trustworthy but that is another topic. If you are interested, maybe, read this blog: Eagle Hospitality Trust: Financial engineering NAV. So, if we are worried about rising interest rates and REITs doing poorly, we should also be worried about investing in real estate in general. I very much prefer investing in REITs because:...
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By A Singaporean Stockmarket Investor (ASSI)
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