Lieu Ching Foo, an independent financial planner and founder of HowToFinanceMoney shared his insight and knowledge in the strength of Malaysia REIT.
The best thing about REIT and property is the passive cash flow. We love investing on properties because it’s an inflation hedge, right? REITs, though are not seen as a sexy investment in 2014 based on analyst reports from the last quarter.
When investing in any business we must first look at their SWOT Analysis. SWOT Analysis is used to evaluate the Strengths, Weakness, Opportunities, Threats of a business to determine a company’s direction. Strengths and weaknesses will be something internal characteristics and elements, while Opportunities and Threats would be something external.
Though Malaysian REITs are not seen as a great investment for 2014, REITs still have their strengths. Here are some of them:
1. Hands on Management Team – There has not been major changes in the management team for most of the REITS in Bursa except for Power REIT which has a new CEO.
2. Brand Name/Sponsor – A lot of REITs they have strong backing in terms brand name and sponsor, or in terms of the property like Capital Malls and Marriot Hotel.
3. Quality of Property – Known quality brands like Midvalley and Pavilion Mall.
4. Umbrella and Integrated Development – Brands under one umbrella company like Sunway REIT.
Bear in mind though, that it’s not seen as a sexy investment for 2014. REITs have cooled down since the second half of last year and no REITs have made any asset acquisition.
Watch the webinar below:
Proxy for Property Investment in 2014: The Risk & the Reward
to learn:
– What are the Strengths, Weaknesses, Opportunities and Threats in 2014
– Why & how you can get better passive dividends than my very own portfolio
– How to construct a REIT portfolio giving minimum 6% net return per year
Content of this session:
