Hunting for a profitable real estate option, especially if you’re buying your first one, requires tireless efforts. To be able to find the most suitable property that will ensure high rental yields, a person has to have exceptional reserves of patience and a sharp business acumen. The world of real estate dealings is tough as well as complex, requiring an investor to be on his toes all the time.

For those looking for avenues to park your wealth in real estate and earn rental income from acquired assets, it is advisable to start searching on your own instead of delegating the responsibility to somebody else. You might have a good rapport with a number of brokers, but like most businessmen, brokers will primarily be driven by their own profits. First hand research that lets you amass knowledge of the market will let you ward off pressures from dealers for buying a certain property, which may otherwise not have that great a potential for earning.

So once you have a budget in mind and ready to go house hunting, it’s important to keep some key points in mind that can help you make a decision that bears fruit for years that follow.

Quality of Neighborhood

The quality of neighbourhood where you are planning to buy an income-generating property will have a long lasting influence on the types of tenants you attract and how long they would stay in the property.Apart from the location, it is equally important to see that people who are already living in the neighbourhood enjoy a sound reputation accompanied by a decent living standard.

Property Taxes

Property taxes can slash your rental income by half. So an investor who is planning to buy a property and give it up for rent, should be completely aware of how much money will be spent on paying property taxes.Though people are more inclined towards finding a property with low property tax, but an area with high property tax is also not a bad idea if the tenants occupy these places for longer periods and ensure a steady revenue stream.A potential property buyer should have a clear idea about the tax information of different areas of a particular city. If there’s profit on the charts, you might as well go ahead with the deal.

Basic Amenities of Life

Before jumping into a property deal, you should first scan the area for parks, public transport, malls, fitness centres and other facilities that can prove attractive to renters. For example, tenants with children will prefer to rent out spaces in areas where there are schools,parks or other entertainment facilities in close proximity. In such a situation the quality of school will further add to the value of your investment and also attract young families to the area, thus giving you greater chances of profits.

The trick is toskim through all available information and find a property which provides easy access to basic amenities of life.

Rental Value

Rental income is the cornerstone of rental properties, so it is very important to have knowledge about the average rent in a particular area. There is no need to invest in an income property if the rents are not going to cover your taxes or occasional expenses on your assets. If you are left with nothing but light pockets at the end of each month, it is better to keep your search on for a property that will add to your savings rather than eating at your bank accounts. You should also check the future rental trends of any given area to analyse the real value of a property in the future. Nowadays, it has become fairly easy and time saving to gauge rental values across Pakistan using web portals like Zameen.com.

Future Development Trends

A shrewd real estate investor will try to collect all kinds of information about a certain area and this includes information about future developments. The municipal planning department holds all information related to new developments already underway or expected to be completed in the future. An area will most likely experience a good growth trend if new malls, parks and housing units are being constructed in that area. But this doesn’t mean that new developments will always lead to strengthening the value of a certain property, especially if they are encroaching upon public space such as parks and pavements. Rest assured, construction of new units will increase competition between landlords to rent out their properties at the best possible price and this might work in your favour if you keep your eyes open.

Crime Rates

No one in the whole wide world looks forward to living in a neighbourhood that is a hub of criminal activities.If you’re searching for a suitable property and are concerned about the crime levels, you should go visit the nearest police station or access public records to ascertain whether a particular area is crime free or not.

One of the best things you can do to is talk to residents of the area. Ask tenants living in the area about your concerns, who are likely to offer a frank opinion since they will not be worried about negativities denting the price of their assets.