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Smart Investors are Buying Timberland, Should You be too?

By
Real Estate Agent with Woodland Management Service / Woodland Real Estate, KW Diversified #1 in Forest Land Mgmt

Smart Investors are Buying Timberland, Should You be too?

  Forest land is taking the lead away from farmland which has been at a historic high for the past few years.
Largely due to Recent Stock Market volatility many are looking to diversify their investment portfolios.
Gaining periodic cash flows from Timber Thinnings and  Harvests along with alternative products from the land like recreational leases, oil and mining.

  The smart investors like these properties because they are:
    1. A steady investment
    2. Very Tangible, they can see the asset, rather than a digital dollar in the stock market.
      Many even visit their land investments, build recreation homes, hunt, fish, hike.
    3. Hedge against long term inflation

  However these are not always a good investment for the uneducated and having the right Forester working with you every step of the way is essential.
  There are many variables in Forest land Investments including;
    Location of the Forest
    Availability of  product markets
    Age of the trees
    Condition of the trees
    Types/Species of trees
    Local government regulations
    Tax implications
    Amount of involvement the investor wants to commit to and how much they want to have their Forester handle.

  Most advisers recommend that it is best to be prepared for a long term steady investment rather than a quick buck type of investment.
Though we have had many of quick return opportunities at Woodland Management Service, they are difficult to find and cannot be relied upon for a steady long term investment.

 

 

Comments (10)

TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

 Good morning Bob. One thing about land, they are not making any more of it. Real estate is always a good investment.

Dec 17, 2015 06:41 PM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Bob. This is really smart advice, I have been buying land for many years, it has always been very good to me.

Dec 17, 2015 06:46 PM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

I have never bought land, but we sure do have some great land here in WI!

Dec 17, 2015 11:17 PM
Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Land has become very popular in Colorado as well with so many folks wanting to live Off-Grid.  It is a long term inventment but a steady one for sure.

Dec 18, 2015 01:12 AM
Robert Vegas Bob Swetz
Las Vegas, NV

Hey Bob ... I remember in the Midwest when people in the northern part of the state would come around and ask to clear cut, and would offer a percentage of money.

Dec 18, 2015 06:15 AM
Bob Crane

Watch out for those characters Bob

Dec 18, 2015 07:05 AM
Roy Kelley
Retired - Gaithersburg, MD

If I were a few years younger, I would partner with you to purchase some timberland.

Dec 18, 2015 06:51 AM
Bob Crane

That would be an enjoyable partnership.


 

Dec 18, 2015 07:06 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Real Estate is always a long term good bet.  Less and less good land available

Dec 18, 2015 07:05 AM
Linda Guess
Keller Williams Tri-Lakes Branson, MO - Branson, MO
Branson area real estate sales.

I had never thought of investing in forest land.  Thank you for this information.

Dec 18, 2015 11:41 AM
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

Really interesting Bob. I can see buying a piece of land.

Dec 18, 2015 12:09 PM
Nicholas Crane
Woodland Companies - Cadott, WI
Managing & Appraising Forest Land

Thanks for sharing these reports, our clients gain value from of this type of information.

Apr 05, 2020 11:53 PM