What is the primary goal of an investment property?

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The primary goal of an investment property is to generate rental income or capital appreciation. Investors typically acquire such properties with the intention of earning a return on their investment. This can come in the form of regular rental payments from tenants, which can provide a consistent revenue stream, or through an increase in the property's value over time, known as capital appreciation.

Real estate investment is typically viewed as a way to build wealth since properties often appreciate in value, contributing to the investor's overall financial portfolio. Moreover, owning a rental property can also provide tax advantages and the ability to leverage financing to increase purchasing power.

In contrast, personal enjoyment and living space primarily pertain to primary residences rather than investment properties. Environmental conservation and decreasing urban sprawl, while important issues, do not directly relate to the fundamental goals of someone investing in real estate for profit. Therefore, options that do not focus on the economic benefits of property investment do not align with the core objective of investment properties.

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