Should you buy private property or invest in REIT?
02 JUL 2026
Lianhe Zaobao podcast - Buying a private property isn't automatically the best use of your money, even if you can afford one. In this podcast, hosts Andrew Andrew Zhan and Siow Zhi Hui explore whether a private home or investing in REITs offers better long-term value, especially for Singaporeans in their 30s facing housing, cost of living and retirement planning decisions.
While property remains a popular choice because it provides a place to live and potential capital appreciation, it also comes with significant costs such as maintenance, stamp duties, financing costs and policy restrictions. REITs offer easier access to real estate exposure and regular distributions, but they are still market investments that fluctuate with interest rates and economic conditions. The speakers also note that over the past decade, global equities have outperformed both property and REITs, highlighting the importance of diversification rather than concentrating wealth in a single asset class.
MoneyOwl CEO and Chief Investment Officer Chuin Ting Weber advises to not see it as property or investing. If affordable, aim to do both. Buy a home that meets your needs while continuing to invest regularly, even if it's just a small amount each month. She highlights that you should buy a home you can comfortably afford, not the most expensive one. Set aside 6 to 9 months of emergency savings first, and ensure your mortgage still leaves room for investing, insurance and unexpected expenses. Housing is more than an investment. Owning your home provides stability and protects you from rising rents. Accommodation is a life need, not just a financial asset.
She also stresses the importance of global diversification, as it beats concentration. Rather than putting most of your wealth into one property or one asset class, diversify globally through low-cost index funds to reduce concentration risk.
Keep investment costs low. High fees eat into long-term returns through compounding. Low-cost globally diversified funds tend to outperform higher-cost investment options over time.
She shares that REITs shouldn't make up your entire portfolio. While they can provide income, dividends are not the same as total returns. REIT prices can fall, distributions aren't guaranteed, and the sector is still concentrated in real estate. She advises people to not try to time the market or interest rates. Predicting short-term movements is difficult. Staying invested consistently is usually more effective than making decisions based on market forecasts.