An Insight of Land Speculation

Running Head: An insight of Land Speculation
An Insight of Land
Speculation

An insight of Land Speculation 1
Table of Contents
Introduction................................................................................................................................2
Issues relating to land speculation on land supply.....................................................................2
Land speculation and its impact on housing prices....................................................................4
Cases and Examples...................................................................................................................4
Conclusion..................................................................................................................................5
Bibliography...............................................................................................................................7

An insight of Land Speculation 2
Introduction
Speculation generally means an investment with an exceptionally high risk. The
desire to make profit through resale of land is one of the financial activities involved in
purchase of real estate with the hope that as the price raises the possibility of returns will
increase. Speculation is basically called as real estate activity as land is one asset that gets
appreciated in value (Swyler, 2015).
This happens due to lot of factors like supply and demand forces, the inflation’s
behaviour, the rates charged by the bank, the nearby development of infrastructure like malls,
schools, cafeterias, airports and a lot more. Land speculation critically involves purchase of
real estate that may decrease the value. Early history of United States often reflects a wide
scope of land speculation. The lands were available in bulk and speculators purchased parcels
with an intention of suppressing them from market. This activity could either spike the prices
or create detrimental effect. In this paper proper study is carried on the impacts on housing
prices and land supply.
Issues relating to land speculation on land supply
The issues of land speculation are equally different from prevailing speculation
techniques.
 The central exchanges are used for speculating in commodity and stocks. The
possible negative effects can be avoided if a person owns or manufactures the
physical commodities through various schemes. For example the sudden shift in the
price, hedging, coated markets which are given by other speculators and enables them
to protect themselves.