As old and basic as it is, the number one rule in real estate still hasn’t changed: location is everything. The area in which you live – its surroundings and distance from an urban center – has a profound impact on the long-term value of your home.

Real estate experts have long cautioned against owning the most lavish house in the neighborhood or making extravagant home improvements that far outdo everything else around. The fact is that, generally speaking, pricey homes don’t appreciate as much as more modest structures do. It’s typically better to buy the least expensive house in an upscale neighborhood and make improvements. In such a case, your home will appreciate more in value.

Wherever you decide to buy, be sure to do a thorough check of the area first. Take a tour of the neighborhood; drive the main and back streets. It’s always good to know all of the ways into and out of your area. Besides, you might stumble across some local characteristics that could raise questions. For instance, would you be okay with having, say, a garbage dump located two blocks away from your new home? Does it affect the property values? And what will you think of it on those hot summer nights when the wind changes?

If you have school-aged children – or are planning to – be sure to check the quality of the district schools. Additionally, if you commute to work you’ll want to consider the drive time. If you’re moving farther away from your employer, how will this impact your gas and auto repairs bills? And don’t forget about property taxes. Inquire with neighbors and town officials. Sometimes communities with higher property taxes have better schools and more services, but that’s not always the case. You may be able to find a comparable home in a different area with lower taxes.

To get an overall sense of the community as a whole and its desirability as a housing market, take a trip around town. Check out other neighborhoods. Are a good many of the homes in some condition of disrepair? Are businesses booming or fading? Read the local newspaper and attend a community meeting to find out what issues concern local residents. Also, be sure to look at the crime and vandalism statistics in the neighborhood and town, as well as the amount of traffic, the locations of home vacancies, and whether any heavy industry operates in the vicinity.

Furthermore, don’t neglect to regard neighboring towns. Are the surrounding communities as desirable as the one you’re considering? What’s the condition of the housing market, not only local, but of the region as a whole? Is it thriving, or is it somewhat depressed?

Finally, pay close attention to the type of house that you buy as long-term investment. Existing homes that are several years old tend to be less expensive than brand new structures, which generally require more maintenance. And though very old homes may be ‘quaint’ or have ‘personality’, they might not turn out to be good investments if you find yourself constantly having to making repairs that hamper overall your cash flow.