The Land Speculation

You should always consider land speculation when buying investment property. A lot of people have heard stories about how someone got rich speculating on land. Sometimes we hear stories about how someone just missed out on the investment opportunity of a lifetime by passing up on buying that land.

Some of the best land speculation happens when you have a use for land and can afford to hold it for a long time. Buying land close to towns and farming the land is a great way to speculate over time. Other uses of large tracts of land such as the old drive-in theaters proved to be an excellent way to provide income while holding land. These theaters are rarities these days, but you get the idea. Try turning land into a salvage yard, outdoor storage facility, campground, or any way you can think of that will allow you to affordably hold onto the land.

Here is a true story: When the first generation of a family came to America, they worked very hard to save enough to buy a property. All the children wanted to buy a big piece of land outside the city. The parents nixed their plan, however, since you could not walk to town from the land. So, they bought a home in the city instead of the big piece of land down the road. Had they bought and held the land, it eventually would have become part of a high value uptown St. Louis neighborhood.


Land speculation does not need to involve a large tract of land. Whenever you purchase a home, you are still speculating that the ground it sits on will increase in value. Try to look for houses that border nicer neighborhoods or are close to a large improvements, such as a new train station.

Whenever you look to buy real estate, always look beyond the structures on the land and its current usage. Look past the properties current value and towards the potential of the ground itself.