Sunday, October 31, 2010

REIT vs PROPERTY INVESTMENT

Recently I have attended some property investment talk that show me the power of LEVERAGE and HOW TO RETIRE as a MILLIONAIRE THROUGH PROPERTY.

So, I go and search for the Good Location property. But horrrr, most of the property very difficult to give you 8% return.

I am still struggling to justify the effort of finding a good rental property.

Some property that I saw:
1) Pangsapuri Kasturi Tiara 
98 k 4th floor walk up apartment rent only RM 500.

2) Pangsapuri Sri Rakyat, Bukit Jalil
68 k 11 th floor, Rent RM 450 fulfil my 8% return but say tenant there not very good and parking problem. This one I have to calculate the risk.

3) Pangsapuri Waja, Taman Tun Perak
75k Ground floor rent only RM 380, out no 8%

4) Taman Impian Ehsan apartment
80k ground floor rent only RM 400, inside Taman Impian Ehsan quite notorious.

Anyone of the reader have any better suggestion or good place to buy for rental properties?

I have a few SLEEPLESS NIGHT.

I think of maybe I am more suitable for REIT and SHARE MARKET rather than physical property but I do let my option open.

Let us do some comparison about property investing and REIT investing.

      Real Estate Investment Trust
Property
Capital
Low
High
Way of Investment
Indirect
Direct
Income
Dividend + Appreciation
Rental + Appreciation
Risk
Low
High
Liquidity
High
Low
Expenses
No necessary
Needed for maintenance
Charges
Broker Charges
Lawyer fees, Middle man
Tax
10% for resident investor
RPGT
Comparison of REIT and Property




Or latest REIT update:http://mreit.reitdata.com/

Average Yield = 7.258%
REIT
Period
DPU (sen)
Price (RM)
Yield (%)
NAV (RM)
Assets Type
Atrium
Q3 – Sep10
2.15
1.06
8.113
1.0386
Industrial
Hektar
Q4 – Dec09
3.10
1.28
8.047
1.2795
Retail
AmFirst
2H – Mar10
4.88
1.23
7.935
1.3533
Office
AmanahRaya
Q3 – Sep10
1.9997
0.915
7.814
0.9717
Retail
Al-AQAR KPJ
1H – Jun10
4.43
1.18
7.508
1.06
Plantation
Quill Capita
1H – Jun10
3.85
1.03
7.476
1.2202
Office
StarHill
2H – Jun10
3.199
0.875
7.312
1.2047
Diversified
Tower
1H – Jun10
4.50
1.24
7.258
1.6210
Office
Axis
Q3 – Sep10
4.00
2.22
7.207
1.8891
Office
Sunway
FY11 (Jun) – IPO
6.70
0.98
6.837
0.97
Diversified
UOA
1H – Jun10
5.15
1.51
6.821
1.4900
Office
CMMT
FY10 – IPO
7.16
1.08
6.630
1.03
Malls
Al-Hadharah
1H – Jun10
3.80
1.41
5.390
1.3733
Diversified
Last Updated : 29-Oct-10
or Singapore REITS http://sreit.reitdata.com/
Meenal Kumar, an investment analyst at OCBC Investment Research, said: "From the perspective of long-term investors, we're actually calling to avoid the first tier large-cap REITs and instead, focus on what we call the forgotten, but still credible REITs.

"And by credible, I mean strong balance sheets, strong sponsors and of course importantly, high absolute yields. And also they should be trading at most, at parity to book value, but ideally at a discount to book value. And in terms of some of our top picks, we like Starhill Global REIT and Ascott Residence Trust."

Similarly, CIMB has recommended smaller REITs in the industrial space, such as Cache Logistics, as bigger players such as A-REIT are trading at a 30 per cent premium to book value.

REITs : Average Yield = 6.489%
REIT
Period
DPU cts
Mkt
Yield
NAV
Gearing
Assets Type
AIMSAMPIReit
Q1 – Proforma Rights
0.52
$0.225
9.244%
$0.26
34.80%
Industrial
Cambridge
Q3 – Sep10
1.187
$0.545
8.640%
$0.58
39.20%
Industrial
First REIT
Q3 – Sep10
1.94
$0.945
8.148%
$0.98
16.50%
Hospitals + Hotel (Indonesia)
CACHE
Q3 – Sep10
1.94
$1.000
7.700%
$0.88
23.40%
Industrial
LippoMapleT
Q2 – Jun10
1.04
$0.545
7.633%
$0.83
10.30%
Malls (Indonesia)
FraserComm
2H – Sep10
0.5549
$0.160
6.936%
$0.26
39.60%
Malls + Office (S’pore and Aust)
MapletreeLog
Q3 – Sep10
1.54
$0.900
6.844%
$0.86
39.90%
Industrial
MapletreeInd
FY11 (Mar)
3.1
$1.070
6.568%
$0.86
38.50%
Industrial
CapitaRChina
Q3 – Sep10
2.08
$1.260
6.548%
$1.06
33.70%
Malls (China)
SaizenREIT
Q4 – Jun10
0.26
$0.160
6.500%
$0.40
36.90%
Residential (Japan)
Ascendasreit
Q2 – Sep10
3.3
$2.060
6.408%
$1.57
34.30%
Industrial
SuntecReit
Q3 – Sep10
2.502
$1.560
6.363%
$1.80
32.90%
Malls + Office
Starhill Gbl
Q3 – Sep10
1
$0.625
6.352%
$0.89
31.00%
Malls + Office
Fortune Reit HK$
1H – Jun10
12.27
$4.000
6.135%
$5.70
21.90%
Malls (HK)
AscottREIT
Q3 – Sep10
1.85
$1.270
5.827%
$1.22
32.20%
Serviced Apts (Regional)
FrasersCT
Q4 – Sep10
2.16
$1.510
5.722%
$1.29
30.30%
Malls
CapitaComm
Q3 – Sep10
1.99
$1.490
5.302%
$1.40
31.50%
Office
PLife REIT
Q2 – Jun10
2.09
$1.670
5.000%
$1.36
32.60%
Hospitals
K-REIT
Q3 – Sep10
1.69
$1.350
4.963%
$1.45
15.10%
Office
CapitaMall
Q3 – Sep10
2.36
$1.980
4.727%
$1.50
37.20%
Malls + Office
CDL Htrust
Q3 – Sep10
2.54
$2.140
4.710%
$1.46
21.10%
Hotels
Shipping Trusts (non-REITs)
Trust
Period
DPU cts
Mkt
Yield
NAV
Assets Type
PacShipTr US$
Q3 – Sep10
0.832
$0.340
9.329%
$0.41
Shipping Trust
FSL Trust
Q3 – Sep10
0.95
$0.445
11.103%
$0.57
Shipping Trust
Rickmers
Q2 – Jun10
0.57
$0.380
7.801%
$0.91
Shipping Trust





ck5354

I am in mid 30s, a guy with a little bit of investment experience that like forehand call rather than back hand call. My investment is based on 90 % FA + 10 % mood+volume+tips. I always have Holding Power before I buy. My ultimate purpose of my blog is to build a SUPPORT Group that can share about Bursa Malaysia. Email me: ck5354@gmail.com

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