Generally the investment in Real Estate Property won't produce the get-rich-quick results, as promised by many real estate agents. However for investors, who are willing to do some homework, make a good purchase and properly manage a piece of property, the rewards can be highly fruitful.

Investment in real estate can be done by the use of various strategies on the road to real estate wealth. In one, investors generally flip properties by buying a house, renovating in short order and selling it for a profit. In another strategy, investors purchase the property with the intention to hold it for several years.

A general and most common approach for property investment in India is to buy an income-producing property like a single-family home, an apartment building, an office or retail building or farmland with the motive to rent the whole or units within it. By having tenants, investors get benefit from not only the appreciation over time, but also the rental cash flow. This strategy also provides the inflation protection because as the operating costs increase, rents can increase as well.

Location is of prime importance, when you are planning to make investment in real estate property and always impact the value of any piece of real estate. For residential properties, the health of the local economy and the distance of school, medical facilities are necessary considerations.

It is also important to check, whether the property is affordable or not, involves a little more homework. Budget every cost, which will be tacked on to the price, including the closing costs and insurance.

Having an exit strategy is as important as having a plan to enter the market. It is important from the point of view of investors to properly estimate how long they expect to hold the asset.

The downside in the real estate investment is that, it is not liquid. Investment in real estate property -- unless you are buying shares in a real estate investment bonds – it is not as liquid as putting money into the stock market. And real estate markets are generally cyclical in nature.

It is important to watch out for:

• Overpaying for the property
• Overlooking rules and regulations
• Not screening for good tenants
• Taking on too much, too soon
• Entering into a bad partnership