Choosing between a smaller home in a more affluent area, a bigger home in a more working-class neighborhood, or building new is not always an easy decision. If you’re in this situation, start by examining your priorities and asking yourself the following questions:

1. Is the surrounding neighborhood or the home itself the most important consideration?

2. Are both neighborhoods safe?

3. Is the quality of the schools an issue?

4. Does either area have more families with kids or adult residents?

5. Does either house need more home maintenance or improvements than the other?

6. Is the area zoned all residential, or does it include commercial or industrial?

7. How far in the area from your work, is the commute an issue?

8. For parents, is the area child friendly? Sidewalks, safe playgrounds etc.

As for the return on your investment, home-price appreciation is hard to predict. The economy plays a big role in what can happen. Most homes hold their value, but in a recession, the value may fall, as opposed to increasing like in strong economic times. Obviously the communities that are the most appealing generally tend to have the best return on investment. The value goes up because everyone wants to live there. Just make sure to find a place that best suits all of your needs, or least the most important ones. The area and schools may be your priority. Or maybe it’s the size of the house, because of kids, or live-in relatives. What ever your situation, you need to make informed decisions that are right for you and your family. Make sure to consider all the facts before you buy.