Friday 19 August 2016

Would You Like to Earn Money from Shopping Malls?

Do you love shopping? I think it is safe to say that Malaysians generally love shopping and going to the malls could be a favourite pastime activity especially during the weekend and holiday.

We could be sipping coffee at Starbucks, watching movie at GSC and buying books at the Popular bookstore. But have you been paying attention to the amount spent on certain food items or products that you usually purchase in the mall? If you do, you would have noticed that the prices of these items might have increased over the years.
The cruel fact is that the same quantity of items or products that we usually purchase might cost us even more nowadays. As a consumer, we might feel unhappy and ‘victimised’ in the extreme scenario due to potential cashflow pressure brought by rising costs of living.
 
Is there anything that we could do to improve our situation?
 
Yes! What we need to do is to EARN from the mall while we SPEND at the mall instead of just SPEND & SPEND. Think of the possibility of owning some stakes in the mall, your perception would change instantly. Think of Real Estate Investment Trust (REIT) which is an investment vehicle listed in the stock exchange that owns a portfolio of income producing properties for a moment.

If you own some stakes in the mall via REIT, you are not just a consumer, you are one of the owners of the mall as well! The equity ownership in the mall entitles you to receive rental income distributed by the REIT as Malaysia REITs are required to pay at least 90% of its net profit to its shareholders. Apart from earning a steady stream of cashflow from quality REIT, you could also enjoy capital gain in the long term if the market price of the REIT increases over time.
 
When you visit your favourite malls such as Mid Valley, The Gardens, Sunway Pyramid, Subang Parade, Mahkota Parade and Pavilion, think of the possibility of owning some stakes in these malls via REIT so that when you spend at the mall next time, you can also earn from the mall!

Life is wonderful when we can have the best of both worlds!

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