by Simon Wright

Created on: February 13, 2008

In recent years it has become increasingly difficult for first time buyers to get onto the first rung of the property ladder, as house prices have continued to rise. Many have stretched themselves too far which has led some into real difficulties, as evidenced by the sub-prime lending crisis in the US.

It's vitally important therefore that prospective first time buyers do their research fully before committing to a purchase. It's important to know that you can afford the purchase and that you are buying into an area (and property) that will prove a good investment. It is with this latter element that this article is focused on.

When searching for a property to buy, it's usually helpful to identify areas to focus your search on. These areas should have three main qualities; they should be somewhere that you'd like to live, somewhere that's affordable, and somewhere which you feel has good house price growth prospects.

You'll probably have a good idea which areas you view as desirable. Factors such as commuting distance, presence of local amenities, and aesthetic appeal will usually be used to come up with a shortlist of possible areas. How, though, do you then decide which of those areas is likely to prove the best investment?

There are several indicators that you can use to gauge whether an area is up and coming and therefore may represent a good long-term investment. Some of the key indicators include:

- Regeneration.
If the central or local government have committed to large scale regeneration of an area, then this should have the effect of boosting medium and long-term house prices in the area. If more jobs are created, then more people will want to move into the area, creating extra demand for properties. Similarly, the creation of better amenities, should make the area a more enticing proposition for future house buyers.

- Presence of a green belt
House prices are a simple matter of supply and demand. If lots of people want to live in an area but there is a limited number of houses available, then prices will become inflated. A green belt is where there is a designated area around a village or town that cannot be built on. It will therefore mean that there is limited ability for the supply of houses to increase, so there's a good chance (if demand remains high) that prices will rise above the average domestic rate.

- Transport links
Convenience is the single greatest commodity in the Western world. We all want to minimise the amount of time that we waste in commuting

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