Legal Definitions - investment property

Investment property refers to a type of property that is bought with the intention of making a profit. This type of property is not occupied by the owner, but is instead rented out to tenants or held for capital gains.

For example, a person may purchase an apartment building with the intention of renting out the individual units to tenants. The rental income generated from the property would be the source of profit for the owner. Another example could be a person purchasing a piece of land with the intention of holding onto it until its value increases, and then selling it for a profit.

Investment property is different from a personal residence, which is a property that is occupied by the owner. Investment property is also not considered an account under the Uniform Commercial Code, Article 9.