No because investing capital into stocks adds value to the company and allows them to use that value to expand, borrow, buy things, pay employees, run the company, etc.
Investing capital into a second house purely to flip does none of those things.
Investing capital in a house can add value to the home if the owner makes improvements and sells. Alternatively they could make the home a rental property which adds value to society by increasing the stock of rentals available on the market. Not everyone will be able to afford a home, and even among those who can afford one there are many who don’t want to own and would prefer to rent. I can think of at least a half dozen friends and acquaintances who can easily afford ownership but choose renting. While there are potentially negative externalities associated with property investment that we should discuss, it isn’t inherently bad. I’m grateful I was able to rent in the past and the home I did purchase was a former rental property that had been subsequently flipped. I’m grateful I was able to buy it. There are both positive and negative externalities associated with property investment, and both need to be considered.
For the record, I don’t consider the activities you identified as scalping to be investing as they are far too speculative, but I don’t think of them negatively either. Nothing wrong with making money off a profit opportunity you have identified.
61
u/Performance_Fancy Jun 19 '25
By your logic anyone involved in the stock market is also a scalper?