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.
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