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RE: How to Land Your First Real Estate Deal - Part 1
If you improve the land, you're creating employment (because someone has to build the improvements) and raise the value of the surrounding land (for example, building a subway station will make neighbouring properties more valuable). Instead of being speculative, you're being productive.
If you're not improving the land and relying on capital gains, then you're speculating.
All I'm saying is that my preference is for employment, better infrastructure and better use of land (no more vacant plots in cities where the owner is just waiting for the price to go up).
I agree with you - especially if you are talking about projects like subway stations, in terms of providing more economic benefits and greater productivity - but it is still highly speculative. They have been working on building high-speed rail where I live for over ten years now and so far it been nothing but a money pit with very little if any progress - most residents here don't even believe it's ever going to get finished and roll their eyes when the subject comes up.
However, when I first got to Fresno, the north part of town was undeveloped and they started building malls and restaurants there and now it is the most prominent shopping area in Fresno, creating lots of jobs and revenue.