Therefore, the rule of buying REIT is to buy those reputable REITs with market price less than their NAVs. This is because, even the trust is liquidated immediately, the fund will pay its unitholders based on their NAV but not the market price. Therefore, if you are able to buy REITs that are less than their NAV, you are actually buying properties at discount. As I highlighted in my previous post, Direct Real Estate Investment vs. REITs, you only need to sell REITs when market prices are higher than its NAV, or else, hold them for dividend cheques.
In average, REIT in Malaysia is giving yield between 6~12%. All information about market price, NAV, dividend yield can be obtained from daily news paper or your online share investment portal.
Happy investing.
REITs (Part 2)
Reviewed by Pisstol Aer
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