What is real estate speculation? How to curb real estate speculation

The investment behavior of pursuing stable income and avoiding risks is called investment.

The investment behavior that pursues the maximization of income without avoiding risks is called speculation.

In the market, it is never possible to avoid speculation. In fact, speculation can help assets find a reasonable price. When assets are overvalued, speculation will occur, the bubble will get bigger and bigger, and eventually burst, and asset prices will fall to the bottom.

It is difficult to contain. We can only take measures to cool the economy when it is overheated, and take measures to increase speculative costs when the bubble is booming, such as raising loan interest rates and loan interest rates.

However, for countries with strict supervision, huge capital, perfect financial system, good domestic economic situation and reasonable structure, speculation is difficult to achieve its goal, which is why the victims of speculation are always emerging countries. While the economy is expanding rapidly, the supporting facilities have not kept up.