When is an investment property more advantageous than a primary residence?

An investment property is considered more advantageous than a primary residence primarily when it generates rental income. This is because investment properties are typically intended to generate cash flow, which contributes to the owner's overall income and financial stability. Unlike a primary residence, which may appreciate in value over time but does not provide direct income, a rental property can offer a steady source of revenue through leases. This income not only promotes better financial returns but also allows the owner to leverage that income for further investment opportunities or to cover expenses associated with the property.

The other options do not inherently provide the same financial benefits. Using a property solely for personal enjoyment means it does not produce any income, undermining its potential as an investment. The location of the property being in a residential neighborhood does not directly affect its investment potential unless it is paired with the ability to generate income. Lastly, purchasing without a mortgage does not guarantee advantageous returns; it simply reflects a different financing strategy, and without rental income, the property remains a personal asset rather than an investment for wealth generation.