The catalyst for this blog is a comment from a viewer of my YouTube channel.
The viewer said:
“… older video says you did not lose playing reit. need your help man. it is starting to feel a bit strange already.”
In reply to that, I said:
“I made a lot of money investing in REITs but that was during the 15 years when interest rates were almost zero. Things different already.”
We must realize that things have changed.
I blogged about how I made more than $2 million investing for income and that was from passive income received alone.
$2 million in passive income.Sunday, January 8, 2023https://singaporeanstocksinvestor.blogspot.com/2023/01/2-million-in-passive-income-if-ak-can.html
It did not include any capital gains made over the years.
I can safely say that more than half of that $2 million in passive income was from REITs.
If we take into account capital gains from voluntary and involuntary sale of REITs in those 15 years, I have made a lot more money from investing in REITs.
For an average Singaporean like me, that is a lot of money.
It has definitely helped me to achieve F.I.R.E. more comfortably.
However, like I said, things are different already.
In many blogs I published and videos I produced in the last year or so, I said as much.
Rapid and significant increases in interest rates have thrown a spanner in the works for REITs.
Indeed, they have had the same effect on all risk assets and not just REITs.
In an environment where risk free rate is 5% or more, Mr. Market is right to demand more from REITs.
This means yield has to expand, all else being equal.
I made videos on this and I am including them here for people who do not follow me on YouTube:
If a REIT was yielding 5% when risk free rate was almost zero, now, it
