An Investment Property is acquired chiefly to yield revenue or capital appreciation, rather than to serve as an owner’s primary use. It might produce passive income via regular occupant fees or be held for future disposal when market conditions improve. Examples range from small, single-occupant rentals to large complexes that generate consistent returns.

Key Points

• Revenue Streams: Owners may receive monthly occupant payments or potential sale profits.
• Operational Duties: Maintenance, marketing, and occupant relations to ensure stable occupancy.
• Risk Diversification: Some portfolio strategies include multiple property types or locations to spread downside.
• Financial Metrics: Investors assess yields using net operating incomes, capitalization rates, or internal rates of return.

Owning property for investment requires proactive management and market savvy to maximize returns while mitigating threats like vacant periods or fluctuating demand cycles.