The phrase denotes actual property acquired with the intent of producing income, located inside a geographically proximate location to the person or entity enterprise the acquisition. This will embody residential dwellings rented to tenants, business buildings leased to companies, or land held for future improvement, all chosen for his or her income-producing potential and handy accessibility.
Proximity presents a number of benefits. It facilitates direct administration and oversight of the asset, reduces journey prices related to upkeep and tenant relations, and permits for a extra knowledgeable understanding of native market dynamics. Traditionally, concentrating investments inside a manageable radius has been a method employed to mitigate threat by means of localized data and management.
