Sunday, June 29, 2008

REITS : Are they worth investing in?



I am quite intrigued by REITS. I read a few articles on the net about it before buying STARREIT , Amanah Raya REIT and TOWERREIT in 2006 and early 2007. I bought a book on this topic but due to busy schedules have only managed to read about 20 pages of a 300-paged book .. tut tut..I found that this "investment product" is not for the people who are in a hurry to create wealth. They are very stable... too stable for my liking, the price movement is at a snail pace and I notice each REIT seems to take turn to achieve the highest volume of the week! Some week was STARREIT, then AXREIT then ARREIT.... indeed they are taking turns!

My TOWERREIT is doing fine, having made 30% on paper... I am not happy though with STARREIT despite the golden triangle properties it is managing neither was I happy with ARREIT..... yes I am aware that this is a low risk and long term investment but too slow for me after two years... so I picked up the phone a couple of months ago and told my remisier to dispose of my STAR and RAYA REIT at a small loss and buy BSDREIT ( Golden Hope company managing palm oil plantation assets/properties) which has promised to give higher dividends (much better than the bank at least). I invest in these REITS to get stable dividends as a form of portfolio diversification.... a term I learn in the net. And Hey presto!... my BSDREIT climbed up from RM1.39 to RM1.42 last week... small rise but still something I love seeing as the two I disposed off hardly rose all these many months, I am really looking forward to receiving good dividends from BSDREIT..... small investor joy :)... and yes I promise myself to finish reading the book on REITs and share what I learn with visitors to my Blog.

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