Home Investment A Smart Guide to Investing: An Introduction to REITs Part 1

A Smart Guide to Investing: An Introduction to REITs Part 1

by Deidre Salcido
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Your bank savings account is paying you 0.24% interest.

Meanwhile, inflation is running at roughly 2-3% annually, meaning your money is actually losing purchasing power every year.

If you have $50,000 sitting in the bank, you’re earning about $120 per year in interest. That’s $10 per month — barely enough to cover a decent lunch in Singapore.

But what if there was a way to earn $3,450 per year from that same $50,000? That’s $287.50 every month in passive income, without touching your principal.

Welcome to Real Estate Investment Trusts, or REITs — one of Singapore’s most reliable wealth-building tools for generating steady income.

What Are REITs? (The Simple Explanation)

Think of REITs as a way to become a property investor without actually buying property.

Here’s how it works: A REIT company pools money from thousands of investors to buy income-generating real estate — office buildings, shopping malls, warehouses, hotels. These properties collect rent from tenants, and that rental income gets distributed to investors like you….



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