Real Estate InvestingHomebuying Glossary
Investment Property
A property purchased to generate rental income or profit, rather than to live in yourself.
In plain English
An investment property is bought primarily to generate income — through rent, appreciation, or resale — rather than as a primary residence. It typically requires a larger down payment and carries a higher interest rate than owner-occupied financing.
Why it matters
Lenders treat investment properties very differently from primary residences — worth understanding the financing difference before assuming your first-home terms will carry over.
Related terms
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