I just got this call from OCBC offering a 0% interest loan (there is only a ~1.x% one-time fee). I’m wondering if REITs are offering >4% dividend rates, does it make sense to take up this loan to get a “jump start” into a REIT? Is there a factor that I’m not taking into consideration (because it sounds too good to be true…)?
- Buying in one lump sum saves me the per-transaction brokerage charge
- I was already looking into getting into a REIT. I just wanted a larger sum to average out the fees
- I get started with the >2% dividend earlier.
- Buying all at once doesn’t give me the safety of dollar cost averaging.
- If I need to sell the stocks to pay back the loan, I might not get all my money back