Episode 31: Building an AED 5M Portfolio Strategy

Building an AED 5M Portfolio Strategy: Core allocation 60-30-10 (60% AED 3M mid-market ready properties for immediate rental income, 30% AED 1.5M off-plan for capital appreciation, 10% AED 500K reserve for fees/maintenance/opportunities), top investment areas (JVC: studios/1-beds AED 750K-1.5M, 7.82% avg yields, studios 9%+, studio avg AED 687K yield 6.9%, 1-bed avg AED 1.06M yield 6.4%, 2-bed avg AED 1.63M yield 5.9%, 5-8% price growth expected 2025; Business Bay: studios AED 750K-1M, 1-beds AED 1.1M-1.8M, 6-8% yields, AED 1,450-2,360/sqft, 4-6% growth predicted; DSO: 6-7% ROI; International City: up to 8% yields; DAMAC Hills 2: 6.72% yields), recommended property mix (ready 60%: 2x 1-beds JVC AED 1M each, 1x studio Business Bay AED 750K, 1x 1-bed DSO AED 600K for immediate income; off-plan 30%: 1-2 properties Dubai South/Creek Harbour, 10-20% cheaper, 70/30 or 80/20 payment plans), financing strategy (Q1 2025 AED 41B mortgages, rates 3.7-5.4%, expat first home ≤AED 5M 20% down 80% LTV, expat investment 40% down 60% LTV, off-plan 50% down; example: AED 3M ready needs AED 1.2M down, AED 1.5M off-plan needs AED 750K down, total AED 1.95M + fees), expected returns (Year 1: AED 180K-210K rental income 6-7% yield, off-plan 5-10% appreciation; 5-year: ready 20-30% appreciation 4-6% annually, off-plan 15-25% handover gains, total portfolio AED 6-6.5M, cumulative rental AED 900K-1.1M, 40-50% total return), additional costs (DLD 4% registration, service charges AED 5-15/sqft annually, maintenance 5-10% rental income), Golden Visa eligible (AED 2M+ investment gets 10-year visa).

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