What type of property is typically considered as "investment property"?

Investment property is characterized by its intended purpose of generating income or profits for the owner. This includes properties that are leased out to tenants for rental income or purchased with the expectation of appreciation in value for resale at a higher price in the future.

When discussing various types of properties, the ones categorized as vacation homes or primary residences serve different personal or lifestyle needs rather than serving as a source of income or investment return. A vacation home is typically intended for personal use and recreation rather than investment. A primary residence serves as the homeowner's main living space, again focusing on personal enjoyment rather than financial investment.

While a plot of land held for future development can be considered an investment if it is anticipated to appreciate in value or generate income when developed, it may not directly serve the same immediate purpose as a property designed specifically for rental income or resale. Thus, it does not fit as clearly within the established definition of investment property as a property intended for rental income or resale profits does.