The 3 most important factors while buying a property are Location, Location and Location. And every one feels that it is easy to find it out, in Real Estate business location is a key factor to decide how much return you will get in your investment.
But unfortunately most of the people take it wrong. Whenever the try to locate a property they end up there search to nearby area where they live …..
They never ask them self where else they can go to get better and higher returns.
The question what one should ask while searching a property "Where can I buy property that will give me a great return?" instead of asking "What is available in the Market?"
While making investment you must look into other important factors such as buying costs and selling costs including stamp duty charges, Cost of borrowing money and interest rates and how attractive the property will be for reasonably tenants / buyers.
You need to consider few other factors while analyzing a location. First and the most important factor is Demand & Supply; see where more people want houses than can be supplied, look for growth rate; either due due to or due to immigration, high number of jobs created, lower price of similar properties elsewhere.
Let me share a strategy adopted by Big Multinational Companies and Developed Countries; they all target Developing Countries and in Growing Cities a growing economy always have capacity to absorb jerks and shocks.
Remember the location of your investment will decide how well your investment perform but never forget the ruling factors, they can give u an advantage over other investors.
In case you are looking for Rental Returns for your investment try to locate potential tenants of that area and see the trend of leasing and competitive properties available.
Good investors always invest on their Market Research. Investment on your research work ensures returns on your deal. As some one said that, "Remember the miles of your path it will help you when you return back". The research done for purchasing the property will help you to sell and guarantee a profitable deal.