I plot a REITS index from selected 5 big REITS (IGBREIT, SUNREIT, CMMT, PAVREIT & AXREIT). One can see, there are still in a short term downtrend, and next 2 weeks will be critical in order for them not to fall into a medium term downtrend.
Lets see, after raya, how they goes. If they rebound as per my target, I may do
a swap IGBREIt into CMMT or SunReit to reduce my diversification (or some expert say diworsification, haha). I want to spend lesser time so I cound be more focus.
If they goes down further, I would do some dollar cost averaging, this will help bring down my average price.
I wont cut loss on my Value Invest Long Term Stocks, as there are not much fundamental change on these stocks. So, I have to stay tune and brave thru the downtrend.
As always caveat emptor.
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Hi Rei
ReplyDeleteWould really appreciate if you can explain further on:
1. I saw announcement like ‘Final income distribution of 2.02 sen per unit (of which 0.68
per unit is taxable and 1.34 sen per unit is non taxable). The taxable here refers to corporate income tax?
2. Some announcement did not mention taxable or non taxable. So it is safe to assume they are not taxable?
3. But REIT is not subject to corporate income tax if they distribute at least 90% of their income right?
4. REIT’s dividend is subject to 10% withholding tax. So referring back to question 1, do i need to minus 10% withholding tax and corporate tax to arrive at the net dividend?
Thanks a lot.
Hi Anonymous,
Deletewould be glad if you would join this site as my members.
Anyway here's are my answers.
1)the 0.68 per unit taxable is the 10% withholding tax.
2) for reits normally the tax is 10%. If not mention, it should be taxable.
3) Yes
4) Just minus the 0,68 with 10% tax and for the 1.34 sen you will get full
Hopes this can help you
Btw, I just saw your comment as it the email of your comment was sent to spam folder. It may be due to recently, my blog was spammed by some automatic spam under "anonymous"
ReplyDeleteHi Rei, thanks for your explanation. I have sunreit and Igbreit and both are in big losses. My cost for
ReplyDeleteSunreit is about 1.51. I really never expect invest in REIT would resulted with such losses. appreciate your advice/comment
I'm holding sunreit & Igbreit also.
DeleteAs I mention in my previous blog, I'm holding reits for long term (>3 years or maybe > 5 years). Short term fluctuation would not be a concerned for me. The more concerned for me is do Sunway Pyramid still have a lot of visitors and her tenants are doing well ? If yes, then it would be a matter of time, these SUNREITS would go back to uptrend. To invest in REIT, one must really need to put aside the money like FD, at least I get around 5 % compare to FD , 3%.
The dividend I have from igbreit was after 10% tax, do I still need to include the dividend income in my total income. As my tax rate is 26%, that means I have to pay the balance 16% tax?
ReplyDeleteHi TA,
DeleteJust clearing my yahoo emails then I realise you have put a comment here. Your comment have sent to my yahoo junkbox while you put a comment here is too far off which I nearly miss out. Next time you can just comment on my latest post though is not related, i will realise your comment easier.
Yes, you just include the dividend income as your total income (in the HK form in our tax form), if you are using e tax, then you will realise putting in the dividend will charge less tax than not put even your tax rate is 26%. You can try to put in and take out, you will know what I meant.