In this segment, Leong Sze Hian, President of the Society of Financial Service Professionals, talks to Lin about an investment instrument called a REIT, or a Real Estate Investment Trust.
Generally speaking, a REIT is put up by a company which collects rent on the properties it owns. These can be commercial properties (such as factories or offices), retail properties(like shopping malls) or residential (apartments and houses), and the properties can be in all sorts of places – Singapore, China, India. The income produced, minus costs, is then distributed among its investors.
Sze Hian explains just how easy it is to buy a REIT and how little you need to invest in order to become a full-fledged, indirect “landlord”. |