#19 Why Do We Invest?



An investment is an asset or item acquired with the goal of generating a source of income or appreciation. In a financial and simple layman terms, what this basically means that we purchase an item, product or goods that we do not use immediately, but is consumed in the future usually for a long period of time to create wealth.


In investing, the choices are unlimited. You could invest in the stock market, investment bonds, mutual funds, savings accounts, physical commodities, real estate, equities, the list goes on.


Here at MCM GIC, the members have the privileged to learn from with the experience investors, and help you with one of the biggest decision you’ll make in your life - how to grow your wealth.


If you’ve ever sold or purchased a property, you’ll probably have seen the word REI. But what does REI means? This is an abbreviation of Real Estate Investing which involves the purchase, ownership, management, rental and/or sale of real estate for profit or to generate an income.


For an example, during a global economic downturn, like the recent U.S. Credit Crunch Crisis and Eurozone Debt Crisis, those who are not affected by it such as the Asian nations are purchasing more properties in U.S. and European countries, as the properties have become relatively cheaper than before the crisis. Despite the potential property bubbles, many parents are confident in buying properties for their children as collateral for a future education fund, possibly by a rental income or the sale of the property which could have appreciated over time.


Some countries are also allowing foreigners to wholly own freehold properties and even land that are often cheaper than foreigners’ home country, especially if the cost of living in these countries is much lower compared to the foreigner’s home country.


Therefore, it is very important to understand what is REI, the pros and cons, the capital outlay, the risk, the exit strategies, the real estate governance law, the real estate tax, the property type, and many other areas that are equally important that ultimately determine good or bad investment.


In the next series of our blog articles, we will be covering several key and essential elements regards financial growth, how to invest, the do’s and don'ts of investing, and so much more. Check out our blogs and sign up to our feed to receive the latest updates and information available for all your financial knowledge needs.




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