1. Be a long- term, passive investor
Since my investment horizon is long (meaning I expect to be working for at least the next 30 years), I have the luxury to be aggressive in my investment choices. However, looking at my current state of income and savings, apparently it is rather pathetic. Hence, I have to be pragmatic in my approach.
Below pointers are what I have implemented:
- Buying REITS to collect dividends
- Buying Blue Chip stocks as they are more stable and some even pay out dividends
- Buying into Indexes and ETF's
-
Subscribing to Peter Lynch's concept of Beating the Street for my investments
1.Highest yield - 5- 6% - to beat inflation rate
2. DPU consistency
3. NAVPS < Bid Price - to see if undervalued
4. AFFO - the 'real' Cash Flow
5. Leverage < 30%
6. D/E < 60%
7. Interest Coverage Ratio > 5%
8. Rental Occupancy
9. Rental Reversion - Positive is better
10. Undervalued P/B < 1
11. Diversification - property categories
12. Weighted Average Lease Expiry - improving market, choose shorter lease. Deteriorating market, choose longer period.