Look at an example from the wiki page (http://www.creationkit.com/GetLocation_-_LocationAlias):
Location myHouseLocation = Alias_MyHouse.GetLocation()
See any difference between it and your script? Right. As you can see in a Syntax field:
Location Function GetLocation() native
GetLocation returns a Location type data. In your script however it would have to be a string (because it's between quotation marks).
Also this is an alias script.
And the third thing is that you try to create a new function which you do in a wrong way... and you probably even didn't intend to do at all. Here you can see how it should be done: http://www.creationkit.com/Function_Reference.
That's how a frame of your script would look like.
Spoiler ScriptName YourName extends AliasLocation Property CurrentLocation AutoEvent OnNotSure; I think that only OnInit works with LocationAlias Scripts ;Here goes whatever you would doEndEvent
HOWEVER it doesn't seem posible to get player's location using this method. Instead you should use http://www.creationkit.com/GetCurrentLocation_-_ObjectReference which is an ObjectReference script function. In other words it will work with objects and actors instead of aliases.
Scriptname PlayerLocationScriptWhatever extends ObjectReferenceLocation Property Haafinger AutoEvent OnDontKnow if Game.GetPlayer().GetCurrentLocation() == Haafinger ;do whatever endifEndEvent
Maybe a simpler way to do this would be to use an http://www.creationkit.com/IsLoaded_-_Location function. But anyway, you can see a couple of things here. You don't attempt to create a function. You use an Event. And you declare a Property which you later use. This property is of a correct type (Location) so it will work with output from the function.
About Aliases, that's how you use them in scripts. I think Properties named Alias_HereNameOfAlias are even automatically created. It's just to specify that this is, in fact... well, an Alias.
Also, why wouldn't it be acceptable? A Property doesn't have to be called the same as the thing it refers to.
I'm sure this post of mine is especially messy... But I hope it will help you.