What is an "investment property"?

An investment property refers to real estate that is acquired with the primary goal of generating income or profit, such as through rental income, resale value appreciation, or other financial benefits. This definition encompasses various types of properties, including residential rentals, commercial real estate, and land held for future development.

Investment properties are specifically distinguished from primary residences, where owners live and occupy the property, which aligns with the characteristics of the options related to personal use or public donation. For example, a property primarily occupied by the owner is not intended for income-generation and thus does not qualify as an investment property. Similarly, land donated for public use does not generate income or serve an investment purpose. A property under lease for commercial use could also be consider income-generating; however, it could serve as a segment of a broader investment strategy, whereas the correct answer succinctly captures the broader category of investment properties.