Unless you have been living under a rock, you should be aware that the days of low interest rates are well and truly over – in 2022 alone, the Federal Reserve have announced a total of 7 interest rate hikes (by 0.25% in March, 0.50% in May, and by 0.75% in June, July, September, November, and December), bringing the Federal Funds to 4.25% to 4.50% at the end of the year (from 0% to 0.25% before the rate hikes started.) – statistics taken from Forbes here.
With REITs needing to pay out 90% of its earnings as distributions to unitholders (in layman terms, it is basically dividends to shareholders, but in REITs, it is referred to as such), whenever they need to embark on acquisitions, they will need to take on bank loans to fund for them.
However, with interest rates at high levels now (and in my opinion, it likely to remain at such levels at least over the next year or two before there are any chances of it coming down), how will REITs be impacted?
In the 4th part of this ‘Ready to REITire’ video series done in collaboration with The Joyful Investors, Hazelle and myself will be sharing our thoughts on this, along with why is it still good to invest in REITs at this point in time:
** if you are unable to watch the video above, you can click here to watch it on YouTube.
If you have any questions, or require any clarifications, do feel free to reach out to me here.
You can also send any questions you may have to The Joyful Investors via the following channels: Telegram, Facebook, and Instagram.
Finally, for those of you who have missed out on the previous 3 videos, you can find them via the respective links below:
Video #1 – where we shared on what REITs are, advantages of investing in one, along with its limitations;
Video #2 – 3 criteria we look at when it comes to selecting REITs to add to our investment portfolio;
Video #3 – 3 ‘red flags’ to make sure the REITs you have selected are free of (this will significantly reduce the likelihood of you making a bad investment decision.)
REITs vs Banks: Which Investment Delivers More for Income Seekers?
If you thought 2025 was a wild ride for the stock market, wait until you see 2026! With not only the uncertainty of interest rate changes and geopolitical tensions but also a military operation by Israel and the United States against Iran, it's set to be even more turbulent.
So, with all this in mind, which is the better choice for income investors: REITs or banks?
I'm honoured to be re-invited by Dinah Poehlmann from Your Finance Mind for a fireside chat on Zoom this year, where I'll be sharing my insights on this topic.
Join me on Thursday, 19 March 2026, from 8pm to 9pm, as I offer my thoughts and answer any questions you may have.
Best part? Registration is completely free! Secure your spot now through the link below:
đŸ‘‰ Sign Up Now and Mark Your Calendars
Are You Worried about Not Having Enough Money for Retirement?
You're not alone. According to the OCBC Financial Wellness Index, only 62% of people in their 20s and 56% of people in their 30s are confident that they will have enough money to retire.
But there is still time to take action. One way to ensure that you have a comfortable retirement is to invest in real estate investment trusts (REITs).
In 'Building Your REIT-irement Portfolio' which I've authored, you will learn everything you need to know to build a successful REIT investment portfolio, including a list of 9 things to look at to determine whether a REIT is worthy of your investment, 1 simple method to help you maximise your returns from your REIT investment, 4 signs of 'red flags' to look out for and what you can do as a shareholder, and more!
You can find out more about the book, and grab your copy (ebook or physical book) here...
Comments (0)