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Investment Property

Definition - What does Investment Property mean?

An investment property is one which is not the primary residence of the buyer and is rented to another person other than the beneficial owner of the property for the purpose of making the repayment mortgage terms through the gain of rental income. By essence, the renter will pay the mortgage of the owner and in the end the owner will have a property fully paid for through having rented it out during the time period of the mortgage. The rental aspect can run far beyond the point where the mortgage is covered giving the investor dividends ongoing for a long period of time.

Justipedia explains Investment Property

There are several benefits to an investment property including that the asset will be paid for through the rental and the owner will have the asset forever once it is paid for. In some states and countries, there are rules that govern the amount of investment properties a person can hold and many laws that dictate what is expected from a person who rents a property to another.

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