How to Evaluate Long Term Potential

Is the area’s average income increasing? The more affluent a neighborhood, the higher the property values.

Are employment opportunities growing nearby?  More jobs=more people that want to live in the area. 

Are there any nearby housing or community developments that will enhance the quality of life in the area? If a park with a quiet walking trail, a new golf course, a new grocery store, etc. is being built nearby, the value of the neighborhood will increase.

Is the crime rate on the rise or decline? This can have a significant impact on future property values. 

Are there public transit lines located nearby? This is key in higher-density, more urban parts of town.  It's also important near colleges, so students can get to campus without moving their cars.

Is the property located in a neighborhood surrounded by higher priced homes?  It's always best to buy the cheapest home on the street, not the most expensive!  You can then add value to the home to put it on par with the others.

Does the property have features that will always be valued by home buyers, such as a large kitchen or spacious backyard?

Are there short-term negatives about the area that will eventually disappear, such as loud construction projects? Once those negatives are gone, house prices will likely rise.