What is the meaning of investment property?
What Is an Investment Property? An investment property is real estate property purchased with the intention of earning a return on the investment either through rental income, the future resale of the property, or both. The property may be held by an individual investor, a group of investors, or a corporation.
Pros of investment property
- Make money: Investment properties provide solid returns, either through monthly rent or long-term appreciation. Real estate has traditionally been a reliable source of income in particular.
- Diversify your investments: As a different type of asset from stocks or bonds, real estate provides a portfolio with diversification, which reduces investment risk. Tangible assets like property often act as a counterbalance to “paper” ones like securites, rising in value when the others decline.
- Tax benefits: Owning property comes with additional tax benefits and deductions that help cover the cost of depreciation and other expenses.
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