There are many ways to determine if real estate will appreciate or depreciate. Appreciate means that the value of the property will go up over time. Depreciate means that the value of the property will go down over time. One good way to determine if a property will appreciate is how far the property is from the business area. When a property is close to a business area, and once the job market is good the property will most likely appreciate over time.

Another thing to look for is other properties in the neighborhood. If other properties are being built or fix up, this is a good indicator to show that the properties in that neighborhood are most likely to appreciate in value over time. When it comes to depreciation, there are also many ways to determine if a property will depreciate over time. One way to indicate if a property is likely to depreciate is if jobs are moving away from the neighborhood. Another way to determine if a property will depreciate over time is if it is far away from the business area. With gas prices going up the farther a property is away from the business area the more it is likely to depreciate over time.

One thing that can change this factor is if the nature of business changes and more and more people start working at home. Another thing that can change this factor is if there are technological advances that make access to energy more inexpensive. Unless these changes happen, these methods will continue to be good indicators of the direction a property is likely to go in the aspects of appreciation and depreciation. There is no one hundred percent fool proof way to indicate what a property will do in the future, but if you use some of these indicators you read about here; It will help you to become a better real estate investor in the long run.