No doubt you’ve heard the term “investment property” being mentioned or seen such line items on balance sheet’s of other companies. But what is investment property? Should you have investment property on your balance sheet?
In a nutshell an investment property is property you’re not using in your own business, that’s for one. You’re not using it for your own production, office or whatever similar activities, but rather for renting it out or you’re holding it for future profits (gain in fair value of the property). Continue reading