Investment Real Estate

Filed Under »
Dictionary Says

Definition of 'Investment Real Estate'

Real estate that generates income or is otherwise intended for investment purposes rather than as a primary residence. It is common for investors to own multiple pieces of real estate, one of which serves as a primary residence, while the others are used to generate rental income and profits through price appreciation. The tax implications for investment real estate are often different than those for residential real estate. 
Investopedia Says

Investopedia explains 'Investment Real Estate'

Common examples of investment properties are apartment buildings and rental houses, in which the owners do not live in the residential units, but use them to generate ongoing rental income from tenants. Those who invest in real estate also expect to generate capital gains as property values increase over time.

Video Definition

Related Definitions

  •

    National Association Of Real Estate Investment Trusts - NAREIT

    A trade association that represents U.S. Real Estate Investment Trusts (REITs) and publicly traded real estate companies. In essence, NAREIT works as a lobbyist for both of these groups ...
    Read More »

  • Real Estate Investment Trust - REIT

    A security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. REITs receive special tax considerations and ...
    Read More »

  • Commercial Real Estate

    Property that is used solely for business purposes. Examples of commercial real estate include malls, office parks, restaurants, gas stations, convenience stores and office towers. ...
    Read More »

    • Housing Unit

      A house, apartment, mobile home, trailer, group of rooms, or single room occupied or intended for occupancy as separate living quarters. Separate living quarters are classified as a ...
      Read More »

    • Landlord

      A real estate owner who rents or leases land or a building to another party, known as a tenant. The landlord will often provide the necessary maintenance or repairs during the rental ...
      Read More »

    • Plottage

      A real estate term referring to the process of combining adjacent parcels of land to form one larger parcel. Typically the value of the whole parcel will be greater than the sum of the ...
      Read More »

    • Effective Gross Income - EGI

      The amount of income produced by a piece of property, plus miscellaneous income, less vacancy costs and collection losses. Effective gross income is a metric commonly used to evaluate ...
      Read More »

    • Real Estate Operating Company - REOC

      A company that invests in real estate and whose shares trade on a public exchange. A real estate operating company (REOC) is similar to a real estate investment trust (REIT), except that ...
      Read More »

    • Like-Kind Property

      Any two assets or properties that are considered to be the same type, making an exchange between them tax free. To qualify as like kind, two assets must be of the same type (e.g. two ...
      Read More »

    • Alligator Property

      In real estate, when the cost of mortgage payments, property taxes, insurance and maintenance on a rental property is greater than the income it brings in. If this situation is not ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions