There are many aspects to buying property, but one general rule is that you should buy property that has potential. In other words, it should appreciate in value so that you can make a tidy profit by selling at the right time.
One of the biggest mistakes newbie investors make is to buy or not buy based on the house that is standing on a property. If you have been making decisions like this, it is time to change. What you have to look out for is the land and only the land. A good piece of land may not look attractive because it has a run down two bedroom house on it. The truth is that if the neighborhood is good and the land around it is selling like hot cakes, then the dingy little house is sitting on a goldmine.
Land appreciation or depreciation occurs due to a simple of supply & demand. You need to keep your eyes open for areas that beginning to grow in demand. Identify good properties, work out the best bargain for it and pounce on it. Once you get hold of it you can do one of two things; you can tear down the existing structure and put up a better one or you can leave it be. Either way you just have to wait till the right time. If you catch the property rush at the right time, you stand to make a very tidy profit when property demand hits its peak.