Investment properties remain a cornerstone of wealth-building in real estate, offering avenues for passive income, appreciation, and portfolio diversification. In 2025, with global real estate markets stabilizing amid lower interest rates, savvy investors can achieve annualized returns of 8-12% through strategic approaches, though risks like market volatility and supply shortages must be managed. Core strategies include buy-and-hold, where properties are purchased for long-term rental income, often yielding steady cash flows with net returns of 2-5% after expenses, bolstered by tax advantages like depreciation deductions. Value-add investments involve renovating underperforming assets to boost rents and values, potentially delivering 15-20% returns but with higher upfront risks.