Timberland is an investment that is off many people's radar. However, there are many reasons to take another look at timberland as an investment opportunity.
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Why is timberland a good investment?
Many consider now to be an exceptional time to invest in timberland because of its relatively low cost compared to historic trends. Timber is an investment that grows on its own. As a biological organism, trees grow on their own. Trees get bigger, and that means more wood. They also replicate themselves. Their growth continually adds value to your investment.
Earn annual lease income.
Timberland often has other natural resources on it, such as lakes, streams, and fields. These areas can be leased for recreational use. You can also build your own vacation cabin on the property. Timberland is a hard asset.Forests are a physical asset of which there is a limited supply. Both the timber and the land will appreciate. There are also tax advantages to owning timber real estate.
Forests & Timber Land in the U.S.A.
The United States has one of the world's largest and most productive resources in its forests. Out of 2,263,259,000 acres of land in the U.S., 33% of it is classified as forested land.
70% of the timberland in the U.S. is located in the South. Of this, private owners own 90%. The Southern States include Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Alabama, Arkansas, Florida, Georgia, Kentucky, and Virginia. The ten most common types of trees in the South are:
Oregon is the most timber-dependent state in the U.S. A booming construction industry created demand that fueled an economic boom for the state. Forests here are dominated by Douglas Fir and Ponderosa Pine. California, Colorado, and Montana also have significant timbers industry and a large number of acres of timberland for sale.
The hardwood markets in the Northeast States of Vermont, New Hampshire, and Maine are solid investments. These include Sugar Maple, Yellow Birch, and Red Oak.
Appalachian Hardwoods Timber Market
It is known that the Appalachian hardwood timber is the best, and highest-quality in the country. The regions of West Virginia, Southern Ohio, and the Northern Appalachian between Georgia and New York are famous worldwide for their hardwood. These forests consist of White Oak, Red Oak, and Walnut that is turned into beautiful hardwood flooring.
What to look for in timberland.
When buying timberland, it's important to look for some of the same factors you would look for in any real estate transaction. It is key to look at several factors when considering this investment.
Also consider what types of trees are on the property and their value. Remember, timber values depend on the size, species, and quality of the trees that are on it.
Hiring a Forester
It is a good first step to hire a Forester. This is a professional who can help you evaluate the trees on your selected plot, tell you about their quality, analyze the soil, and check other growing conditions. He or she can also advise you on managing the property.
These are just a few of the reasons purchasing this type of real estate is such a solid investment. Would you like to see your timberland property listings on Land Broker MLS? Join our Co-op by signing up today.