JT7 completely agree that people have different takes on what is speculation and investing.
I don't want to sound like I'm against either as both have their places within portfolios and different levels of risk assets will suit different individuals. I've no preference with either proven rural areas or proven city areas. They both have their pro's and cons.
I'd just like to point out that claiming unproven properties or areas are "investment quality" when they are actually "speculation" as per the definitions in the dictionary can be misleading to newer faces who've yet to make up their mind on strategy. Not saying that anyone has done that here... and I was just having a joke before
Most of you will know this but for those that are unsure:
"
Speculation is the practice of engaging in risky financial transactions based on incomplete evidence in an attempt to profit."
"
Investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time."
Hence,
guessing what the next boom town is going to be is not investing. It is speculating. It has it's place but risk assets are recommended to be only a portion of your overall portfolio.
People who are starting (first 3 IP's) should focus on solid, proven investments or risk getting stuck. Those
whom are established and can risk a flop should definitely speculate as per their appetite for risk as the rewards can, as we all know, be fantastic.
Good luck guys, and happy hunting!