What Is Land Speculation? A Real Estate Investor’s Guide

Speculating on land has been a tried-and-tested real estate investing strategy for centuries. As the old saying goes, you should buy land because they aren’t making any more of it. So exactly what is land speculation?

This type of investment strategy is characterized by buying vacant land and holding it until development interest increases in an area. Typically, land speculators will buy up undeveloped property hoping bigger commercial builders and employers will enter the area in the future.

Here’s an overview of this type of real estate speculation, the pros and cons of this type of investment strategy, and whether real estate investors should try to get in on the action.

What is land speculation?

Land speculation typically involves the purchase of undeveloped land to sit on for an indefinite amount of time. The thinking behind land speculation is that a future economic event will dramatically increase the value of the land, which can then be sold.

This economic event is usually urban expansion, housing development, or major employers or industries moving into a particular area. The idea is that there has to be a substantial prospect of future economic growth, and that you, the speculator, will benefit from other

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