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> when people investment in real estate that is speculation. Investing in real estate would be purchasing property for its income earning potential. Speculati
by tmnvix 9y ago
> when people investment in real estate that is speculation.
Investing in real estate would be purchasing property for its income earning potential.
Speculating would be purchasing for capital gains potential.
You might argue that people do both at once but if you would only make the purchase if there is a potential for capital gains and not otherwise, then you are speculating.
- gnaritas 9y agoInvestment and speculation are not different things, all investment is speculation.
- tmnvix 9y agoFrom the definition of financial speculation cited elsewhere in Merriam-Webster: > Speculation is a method of short-term investing whereby traders essentially bet on the direction an asset's price will move. This is what most people would assume speculation to mean in the context of this discussion. It is quite normal to compare this type of speculative investment with other - especially productive - investment.
- gnaritas 9y agoI'm very well aware of what he means, that's obvious from my response, one can be clear without misusing words and it's entirely appropriate to correct someone who's using those words wrong as if they're unrelated when they're actually both a type of investing. Try understating what's going on before you start quoting a dictionary.