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.
"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 |