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Please can someone explain the difference between investment property and property for sale.?


Very often I am seeing Investment property seperate from houses for sale also on some real estate sites i am seeing no investment property allowed ? Please help

Wow!

It ain't that difficult people!

Paul, you know what investments are?

Things you put your money in, and then after time, if everything works out okay, you take your money out, and hopefully wind up with more money than when you started?

Well you can do the samething with property.

And this property can take many forms. Some people buy vacant land. They buy the land speculating that one day a developer will buy it to build houses on it, or a shopping mall, or something.

And as far as houses there are some you can buy, and there are some you can rent. Well, the ones you can rent, are also owned by somone, and this is looked upon as an investment. These wil also show up under that "Investment Property" category you asked about.

Apartment buildings. office building, duplexes and other multi- family type units are also considered investment properties.

In effect, any kind of property (land and or structure) that you may purchase but don't plan on living in might be considered an investestment property. They key is that it's something that will either provide you with an income immediately (rental property) or something that will accrue in value, and you will realize the greater value when you sell it.

That's what an investment property is.

So when you see "No investment property allowed," that typically is talking about condo units. The people selling the condo units only want people buying the units that are going to live there. They don't want investors that might by one, two or three units, then rent them out.

Usually, renters don't takes as good care of a place as an ower would, and therefore the value goes down. In this case, the sellers don't want to have this value problem, they only want owners living in the units, not renters.

A house for sale is just that, to be occupied by the buyer and their family.
An investment property is one to be "flipped", that is rehabbed and then put up for a quick sale. These homes often become rental properties then to pay off the mortgage loan.

Investment property is still a property for sale! it just means theres money to be made on it, eiter it s in a good student let area so you can rake it in renting it room by room, or it needs a lot of work done so thier selling it cheap to reflect that. if you are or know a buider you can do the work cheaper than average joe and make a tidy sum.

the property for sale has a roof whereas the investment property may not.

Investment property can only be advertised as such if it is zoned non-residential. This can include multi-housing, commercial, etc. Check the zoning on the property before you buy.

There's no real difference.

When you see the term "investment property" it often indicates that there is already a tenant in the property with a lease. You can still purchase it for your own use, but you'll have to wait until the lease expires until you can put the tenant out and move in yourself.

An "investment property" is ofter a term used for advertising purposes. The agent or seller is suggesting that you can make money on this house, not always the truth though. It might be a house that needs work or a multi-family you can rent out. A real estate agent can help you find what you are looking for. It doesn't cost you, the buyer, to use an agent, because the seller pays the commission, so I'd suggest finding an agent, who can access the MLS and give you more accurate information then what you are reading in ads.

"no investment property allowed"
they want you to live there if you buy it. Is it a condo?... the quality of residents goes down if the building is full of renters...

Buying a house is probably the biggest investment you will make in your life, and that's what it is.
When you think of investing in something you are expecting a good return for your money and usually you can expect this.
The same applies when you are looking at ads for properties for sale, you would expect the price of the property to increase.
A good investment is where you can buy a house that is undervalued say for mortgage purposes, or in an area lets say that's going to have improvements made to it, parks, golf courses etc, anything that will increase the value of the property.
A property that requires work doing to it can be a good investment so long as the repair work can be done cheaply enough to bring it in line with other properties in the vicinity.
0ff plan properties or properties in countries that are about to enter the EU are also often refered to as investment properties.

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