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You are as good as the company you keep! One of the biggest factors which determine whether the value of a house will rise or fall is the surrounding neighborhood. Buying a property which quickly declines in value can often mean that the neighborhood it is placed in was not the best option for such an important investment. But what are the factors that give a neighborhood its value? How can you tell if a neighborhood is on the rise or fall? Luckily you do not have to be a financial wizard!Proximity to Public TransportationTransportation plays a big role in real estate transactions everywhere. When the buyer chooses a new home, he also chooses a new lifestyle. Shorter commutes and green surroundings are slowly rising in the preferences of today's real estate consumers.Proximity to Shopping Areas and SchoolsThis is another influencing factor by which most consumers choose a new neighborhood. The kids must receive their education and nobody wants their child to undergo hours of traffic on the bus or train, on their way to school.Employment OpportunitiesNearby employment opportunities might be the most important element in driving real estate prices. Look for newly developed commercial or business areas and for an influx of new neighbors. They usually mean that the neighborhood is on the rise, in its development period and that home prices will appreciate over time, making your investment wise. You can easily recognize areas with long term high employment opportunities by their low unemployment rate, by the presence of prominent universities, research facilities or by the local presence of creative industries (music, television, design).Desirable AmenitiesIn real estate, the term "amenity" describes any asset within the local community that people find advantageous. A few examples can include beautiful parks, pleasing views, a distinctive architecture or a highly educated population.Low Crime RateNaturally, it is very important that the area you choose to live in should have the lowest crime rate possible. Choosing surroundings that are safe and sound constantly appear in the top of the consumer's preferences when it comes to neighborhoods. Crime rates are determined by hard data, found in FBI statistics, for example. Do the online research and make sure you choose a safe place for your family!Before moving on to house visiting, drive around through your prospective neighborhood and try to get a feel of what's coming next. Look closely at the surrounding houses and lawns. Are they well taken care of? Is there any feeling of neighborhood pride present? A consistent increase in home values over long periods of time is a key factor, telling consumers that the neighborhood will protect their real estate investment in time. Time, long periods of time should be the only timeframe you analyze before deciding. Ignore last month's charts, trends or tendencies and focus on longer timeframes when researching your options.
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