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Investment Property Definition

An investment property is any real estate property which the primary reason for purchase is to generate a return on the investment. This can be through rental income, future sale or both. Furthermore, an investment property can be a long-term or short-term investment.

Investment Property Examples

For example, “fixing and flipping” houses is generally a short-term investment. This is because the purchase of the property occurs. Then, the home undergoes renovations and sells immediately for a profit.

However, property utilization plays a large role in the overall value of the investment. For this reason, many investors carefully inspect the area and asset uses prior to investing in the property. An example of this is if you were looking to purchase a property that has use for either residential and commercial. Here is where you want to weigh which property use will generate more profit for you in the long run.