Why diversify your investments?
Seems logic not to invest all your savings on one share in Qatar stock market correct? You diversify on low risk medium to high risk the same should be applied when you buy to invest in Real Estate. Cash out your hard earned money and buy the right property at the right price.
In this article I will focus only on the real-estate market in Doha Qatar where and how you should diversify your real-estate investments.
I tend to recommend a 30/70 % breakdown of real-estate portfolio distribution between high-risk to medium low risk. This formula rule might not be the right formula for everyone, but it’s a conservative rule of thumb that should bring you wealth with manageable risks.
What’s the right price!
Real-estate market is dynamic and it will go up and down over the years. Influenced by numerous political and financial factors consumers and lenders confidence in world market economy and regions impact investors appetite, in todays property market its fairly fast to reach based upon a combination of logic and emotion, hence Qatar market is an emotional market in general.
How long should you plan to hold your property investments?
I recommend real-estate investors to focus on medium to long term to ensure the best performance over its lifespan. Invest wisely cost price is definitely important, but why is that? You will yield higher, however it’s to often overlook, what empty property does tremendously affect yield over its lifetime. Key is ensuring targeting stability to maintain high occupancy rates.
When market is hot and tenants are crumbling to secure a new home, granted you could turn key easy and effortless. However when market turns and supply is higher than demand, benefits and feature factors become important to maintain Yield such as; strong location view and community in addition to well maintained good reputable property. Managers. Prime apartments and villas in the Pearl Qatar as rest of Doha will always be moveable, as long as the owner adjusts to market price expectation.
I advice to choose a middle way in between ultra prime catering only to a small high net segment and low-end areas and quality. Don’t buy with only target to invest in hot low sq./ home sale prices, if this mean compromising on location and benefits, those features will maintain occupancy during soft market times.
If you do believe acquiring the lowest price is your strategy only and investing in less desirable location properties be ready to hold on to them long enough that pure yield is your main objective.
So as an example you invest 20% of your real-estate portfolio into underdevelopment areas with a strong LAP. Resulting in higher risk and higher appreciation expectation. A good area is the up and coming areas in Lusail City, apartment blocks within Erkyah or Yasmeen city. First Phase buyers can buy the best location choose prime garden locations in additions to mix use buildings, where LAP connectivity and infrastructure are under development Property Hunter offers exclusive buildings, where we advice you to buy with adventurous payment plan including post delivery schedules. This will significantly increase your return on investment over the lifespan you hold the real-estate asset.
Key is to allow the area to develop, which is fast tracked due to the 2022 football world cup hosted by Qatar Lusail Stadium the opening match will be played the area targeting best time to sell when let it mature selling when the market has developed and demand from end users and investors only focusing to invest and buy ready apartments with immediate return. If you sell after 5 -7 years you will have yielded high due to the post delivery payment schedule and you can comfortably then move on to your next investment project.
Invest 50% of your portfolio into medium low risk apartments in the pearl Doha Qatar or smaller buildings strategically LAP hotspots of land plots and residential villas within Doha’s popular residential areas, close proximity to metro links, landmarks and Schools. As world trends confirm connectivity hubs increase demand as a rule of thumb.
Well build modern well managed properties and buildings, prove overtime to yield comfortable, however somewhat less than individual and divided family worker shared property accommodations. Single-family homes and modern compounds yield tend to will be stable if you pick popular areas with strong reputable communities. Important note land appreciation tends to play a positive factor and increase value in dense developed area. A professional investor will use equity release from these assets drive them into other property type investment sectors as opportunities appear.
20% of your portfolios invest it in your own home and preferred lifestyle Buy a land with Property Hunter Luxury Real-estate with a 4 year payment plan within a prime exclusive residential area in Lusail close to Vendome and waterfront community and lifestyle. Build your dream home and keep it for next generation and it will surely have growth. Waterfront and Lush green garden communities are scares in Doha and first phase investors will benefit from the lack of future release of new similar real-estate projects in the area. And resale second owners anticipate to pay the premium. Lusail will become the futuristic city and business center of not only Doha but all of Qatar. Numerous governmental and private businesses is planning to operate and move main office to Lusail in the coming years.
Property hunter luxury Real Estate looking forward to have an in-depth discussion and advisory session with you on how you can diversify your property portfolio selling and buying your assets to grow your personal wealth and financial independence.