What is meant by "investment property"?

Investment property refers to real estate that is acquired primarily with the intention of generating income or profit. This can come from various sources, such as rental income, resale at a higher price, or capital appreciation over time. Investors often seek out properties in locations or situations that are likely to appreciate in value or generate consistent cash flow.

The other options describe scenarios that do not align with the definition of investment property. A home purchased for personal use indicates a primary residence, which is not intended for generating income. A property being renovated could be a step toward becoming an investment property if the intent is to sell or rent it afterward, but by itself, it doesn't automatically classify as an investment property without the intention behind it. Lastly, a temporary residence for travel typically serves a personal or vacation purpose rather than an income-generating one. Thus, the definition of investment property focuses on the intent and purpose of acquiring the real estate for financial gain.