An investment is usually the allocation of money or sometimes, another resource, like time to buy, build or improve something in the hope that it will benefit you in the long run. The investment may be shares, capital allocated to a project or time spent improving a product or service. The result of the investment may or may not benefit you, depending on how the item you invested in fares.
For example…
Buying property with the main intention of leasing it out and waiting until the real estate market improves, with significantly higher house prices is an example of an investment. Many people buy an “investment property” and although they may have a debt, they are hoping that once property prices increase, they can sell the property off for a higher amount, pay off the debt and pocket the differences. But, as anything in life, there is a risk involved, if the real estate market dives, the investor could be in for a loss.
