Importance of location in real estate purchase always seems to be overestimated. The reason is that the location is what translates into profitability for the investment. Location, primarily, creates the desire for purchase and the desire, in turn, creates demand which causes a rise in price.By the time a buyer is trying to identify the location for the purchase of residential or commercial property, it is obvious that he/she is ready to pay up a good amount of saved capital. So it is important that the buyers end up choosing the right location that makes the real estate purchase tick. Whichever be the country of residence, many a time a buyer makes a decision based on the home that they are going purchase and not the area that it is located in. Once the purchase is made, the area will never change. This mistake can cost the buyer a lot. In case the buyer is looking for residential property, the common factors that are to be checked out are the status of the neighborhood, proximity to facilities and amenities, access to water, safety quotient of the location, views from the property, etc. Factors such as closeness to transport hubs, proximity to major highways, markets and warehouses, etc., have to be considered prior to purchase commercial property. The price and the location of the property are both important factors. The location ultimately dictates everything else about the property. If the property is situated in a prime locality, it will command a better selling price. The same property in an area that is not so prime will command less price. Though the buyer may end up paying more for the property in a better locality, there are likely to be more profitable options in the times to come. However, if the buyer invests in neighborhoods that are worse off, though the cost may be a little lower, in the beginning, there will eventually be lack of demand, lower rents, and lower prices.It is important to make a note of a few points about the location of the property. It is a good idea to find out if there are going to be major changes in that area or adjoining ones. This would help to save a lot of heartache in the future. Any purchase of a home should be backed by a well-thought-of plan with regards to a location. It is a good idea to pay some attention to the fact as to who is likely to buy your home in the future. This makes selling easier. Also, if you buy a home at a location where the pool of buyers is large, it is always easy to sell that home in the future if required. It is also important to make the home purchase in an area that is attractive to the millennials. It has been observed that more of them buy homes instead of renting them.