Investment Real Estate

A A A

DEFINITION

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 EXPLAINS

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

RELATED TERMS
  1. Certified Commercial Investment ...

    A professional designation awarded by the Certified Commercial Investment Member ...
  2. Plottage

    A real estate term referring to the process of combining adjacent parcels of ...
  3. Housing Unit

    One of a house, apartment, mobile home, group of rooms or single room, which ...
  4. Like-Kind Property

    Any two assets or properties that are considered to be the same type, making ...
  5. Real Estate Investment Trust - ...

    A security that sells like a stock on the major exchanges and invests in real ...
  6. Commercial Real Estate

    Property that is used solely for business purposes. Examples of commercial real ...
  7. Alligator Property

    In real estate, when the cost of mortgage payments, property taxes, insurance ...
  8. National Association Of Real Estate ...

    A trade association that represents U.S. Real Estate Investment Trusts (REITs) ...
  9. Real Estate Operating Company - ...

    A company that invests in real estate and whose shares trade on a public exchange. ...
  10. Landlord

    A real estate owner who rents or leases land or a building to another party, ...
Related Articles
  1. 5 Mistakes That Make House Flipping ...
    Home & Auto

    5 Mistakes That Make House Flipping ...

  2. How Interest Rates Affect Property Values
    Personal Finance

    How Interest Rates Affect Property Values

  3. Add Some Real Estate To Your Portfolio
    Mutual Funds & ETFs

    Add Some Real Estate To Your Portfolio

  4. Real Estate Speculation In College Towns
    Personal Finance

    Real Estate Speculation In College Towns

  5. Tips For The Prospective Landlord
    Home & Auto

    Tips For The Prospective Landlord

  6. Can Real Estate Stabilize Your Portfolio?
    Home & Auto

    Can Real Estate Stabilize Your Portfolio?

  7. 5 Mistakes Real Estate Investors Should ...
    Home & Auto

    5 Mistakes Real Estate Investors Should ...

  8. An Introduction To Real Estate Futures ...
    Home & Auto

    An Introduction To Real Estate Futures ...

  9. Top 10 Features Of A Profitable Rental ...
    Entrepreneurship

    Top 10 Features Of A Profitable Rental ...

  10. How To Value A Real Estate Investment ...
    Home & Auto

    How To Value A Real Estate Investment ...

comments powered by Disqus
Hot Definitions
  1. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  2. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  3. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  4. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  5. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
  6. TIMP (acronym)

    'TIMP' is an acronym that stands for 'Turkey, Indonesia, Mexico and Philippines.' Similar to BRIC (Brazil, Russia, India and China), the acronym was coined by and investor/economist to group fast-growing emerging market economies in similar states of economic development.
Trading Center