Real estate investment has become one of the most profitable investments in today’s time along with a sense of security it provides to count on. However, investing in property requires detailed market research and waiting for the right deal. Finding the best deal requires determining the property by appreciating the value and good rental income. For first time investors, it is not easy to identify a good real estate deal.

So, how so you get to know whether a specific deal is a good investment or not? Let’s take a look at the below parameters for locking the best deal of your life:

5 things to look out for a Good Real Estate Deal

Rental income

The primary objective of investing in any property is income generation. Look for a property that can fetch high rental income and create positive cash flow. You can research on the average rental rates in the nearby area to determine the estimated rental value. The objective is to settle with a rental value that could cover the monthly mortgage payments.

Location

A profitable location is dependent on factors like infrastructural development, green area, accessibility and connectivity, future developments, job opportunities, necessary amenities like hospitals, schools, etc. Besides the stated features, location’s value is also determined by the quality of the neighborhood, population, security, and low crime rate. Also, the location directly influences the rental value and hence, it is one of the major factors of determining a good investment.

Maintenance expenses

Investment is not limited to the purchase amount but also consists of operating and maintenance costs. Identify all hidden costs and the quality of construction before investing in any property. Additional expenses could be in the form of maintenance, repair, renovation, property taxes, and insurance. The home inspection is important before investing to ensure that you are aware of all required repairs and costs.

Negotiate on the Market Value

Always try to negotiate your way to get the desired property lower than the market value. Identify the right time period of making an investment where the property values are either lower than the normal market value or about to rise due to upcoming developments. If you get to purchase a property lower than the market value it is a good investment deal. Hence, the key is to make a well-timed investment decision and reap the benefits of early investments into developing areas with the potential to flourish.

Property appreciation

The future potential of the property is equally important as the current value. Check out the market trends of similar properties to have the estimate of the property appreciation. You can secure profits by selling the property once the rates are appreciating and at peak.

The above factors are the key elements of identifying a good real estate investment deal. Detailed market research and knowledge of the property can give you the additional advantage of making a profitable deal. It not only helps you earn a good rental income and positive cash flow but also increases the re-sale value of the property.