Purchasing Woodland: Money Does Grow on Trees

Every few years, it seems real estate experts change their stance on whether purchasing woodland property is a solid investment. Some years experts state that investors would be better off purchasing cleared land perfect for development, and other years these same experts will state nothing is worth more than woodland property. So, it’s easy to imagine you might be confused whether purchasing woodland property is the right move for you. Below the details surrounding the value of woodland property are explored and discussed in more detail.

What Affects the Value of Woodland Property

The value of residential property is determined by the houses and other buildings established on the property. But, how is the value of woodland property determined. Usually, this value is determined by the size, density, species, and health of the trees located on the woodland property. When you purchase woodland property you are investing in the forestry industry. Therefore, you will want to know more about the trees on a property before you pay up for it. 

The best way to learn more about the value of a woodland property without being a tree expert, is to hire a professional forester to appraise the property. This professional forester will walk the property and determine the particular value the trees on the property hold. 

Woodland Property Requires Patience

Timber always has and always will grow slow. Chances are that if a property has been cut over the past ten years it will hold little immediate woodland value. However, if you were to purchase woodland property now that has little value and sit on it for several years, it could provide a large pay day. Though, this type of investment requires significant patience and always comes with elevated risk. 

While holding a woodland property for say ten years will give the trees on the property time to mature, it could also provide time for problems and hazards to occur. Therefore, starting with a property that has the right trees on it is always the best way to go when investing in woodland property. 

Monetary Gain from Woodland Property

Of course, the most popular way to gain monetary value from a woodland property is by selling the trees that have grown on the property. However, there are also additional ways a woodland property can earn its owner some capital. Woodland properties can be managed for wildlife conservation and for hunting purposes. While not as profitable as timber sales, wildlife conservation and hunting grants can provide additional income while a woodland property owner is waiting for their trees to mature. 

Personal Value of Woodland Property

Unlike developed real estate, purchasing a woodland property can also provide personal value to a property owner, for the property can be enjoyed for camping and other recreation purposes. Ultimately, once you purchase woodland property it is your land and you can use it how you see fit. If you are waiting for the land to develop so you can sell the trees years in the future, you might as well get some personal enjoyment out of the property. Personal recreation is another element to consider when asking yourself, is buying woodland a good investment for you!

Summary: Woodland Investment

Investing in woodland property is a great decision if you can secure the property for a fair price, are knowledgeable about the trees the property holds, and are okay waiting a few years for these trees to reach their peak value. While you wait for your trees to mature, you can also use your woodland property to bring in revenue by using it as a wildlife conservation area or by renting it out to hunters and other recreators.