Investment properties are typically owned by pension funds, real estate limited partnerships, (publicly traded) real estate funds, real estate holdings, or (private) businessmen. These properties are usually rented out for periods of 5 to 10 years, and sometimes they are offered rent-free. Investment properties are located in shopping centers, offices, and smaller industrial buildings. Real estate investors aim for high returns, and to achieve a 10% annual return, the net rental income (rental income minus taxes, maintenance, and interest) should be at least 10% of the purchase price.
